Have You Told Your Insurer Yet?
Working from home has become completely normal. But if you’re running a business from your home, there’s an insurance question that’s easily overlooked:
Does your home insurer know about it?
As providers of the Business Insurance Tasmania needs, we know that it’s worth remembering that the line between home and business isn’t always as clear as it seems.
You may think you simply work from a spare bedroom, keep some tools in the garage or occasionally have customers visit. Your insurer may need to know considerably more about what is happening at the property.
And sometimes, very small business activities can have surprisingly large consequences.
Could Selling a Few Eggs Really Matter?
A Victorian family’s experience provides a striking example.
Their home was destroyed by an electrical fire. When they made a claim on their home and contents insurance, the insurer rejected it because the family hadn’t disclosed a small farm-gate egg business operating from the property.
According to the family, the roadside egg stall was making only around $60–$70 a week.
The family disputed the insurer’s decision, arguing, among other things, that the egg business hadn’t caused the fire. But whatever the eventual outcome of an individual dispute, the case highlighted an important issue:
Something you regard as a harmless little side business may still be information your home insurer needs to know.
But I Don’t Really Run My Business From Home…
That’s where things can become less obvious.
Imagine you’re a Hobart tradie. You spend your working day at customers’ properties, so you wouldn’t necessarily describe yourself as running a home-based business.
But perhaps your ute and trailer are kept at home.
Your tools are stored in the garage.
Materials are delivered there.
You prepare quotes and invoices from the spare bedroom.
Or perhaps your situation is completely different. You sell products online and keep stock at home. You provide beauty treatments from a converted room. Customers visit for consultations. You run tutoring sessions from the dining room.
There are countless variations.
Australian Government guidance includes ecommerce, freelancing, consulting, tutoring, pet services, content creation, catering and health and beauty services among common types of home-based businesses.
Isn’t That What My Home Insurance Is For?
This is where making assumptions can become dangerous.
Australian Government guidance warns that standard home insurance policies often don’t cover business activities and recommends telling your home insurer if you run any part of your business from a home you own and checking your cover.
That doesn’t mean every person who answers an occasional work email from the kitchen table suddenly needs a new insurance policy.
Nor does it mean every home-based business presents the same risk.
What matters is understanding your particular activities and your particular policy.
Does your home insurance cover business equipment?
What about stock stored at home?
What happens if a customer or supplier visits your property and is injured?
Does the insurer know that part of the property is being used for business purposes?
Those are much better questions to ask before something goes wrong.
Your Business May Have Changed Without You Noticing
There’s another trap.
Perhaps you told your insurer about the business when it started — but what you do today bears little resemblance to what you were doing three years ago.
The spare-room business now has stock filling half the garage.
You’ve bought expensive equipment.
Customers have started visiting.
You’ve taken on employees.
Or that little side hustle has quietly become your full-time livelihood.
Government guidance recommends reviewing insurance when a business changes, including changes to employees, equipment, premises, goods, services or business practices.
One Conversation Could Prevent an Unpleasant Surprise
Running a business from home doesn’t automatically mean there’s something wrong with your home insurance.
But assuming everything is covered simply because the business happens to be inside your home isn’t a particularly good insurance strategy either.
If you’re unsure, talk to your insurer or an experienced Insurance Broker in Hobart and explain exactly what you do, where you do it, what equipment or stock you keep at home and whether customers or suppliers visit the property.
RSM Tasmania Insurance Brokers can help you look at both sides of the equation — your home insurance and your business activities — and determine whether there are gaps that need attention.
Because the best time to discover that your insurer needed to know about your home business is before you need to make a claim.
For more information, see the Australian Government’s guidance on home-based businesses and insurance. Australian Government — Home-based businesses
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
Call Now! (03) 6244 7854, or email .
You can also follow RSM Tasmania on Facebook and LinkedIn for regular business insights.
Click Here for more information specifically about workers compensation in Tasmania,
visit: https://wcomptas.com.au/
Talk to Roger Hosie and stay ahead with our Workers Comp insights.
Call Now! (03) 6244 7854, or email .
