Those running a home-based business need to ensure that they have the correct insurance policy in place to cover their needs.

Many homeowner insurance policies will not automatically cover a home-based business and running such a business could even render a typical home insurance policy void.

Home-based business owners should consider general liability – which will provide protection if an injury occurs at the home – content and business interruption insurance as a minimum.

Content insurance will ensure that business-related equipment kept at the home will be covered in the case of fire, theft or other problems. If the equipment is used outside the home, such as a laptop computer or dictaphone, a separate policy will be needed to ensure full coverage.

The interruption insurance will replace a loss of earnings in the event of a disaster.

Other insurance types that those running a home-based business should consider include auto, errors and omission, professional and product liability, and malpractice. The latter covers businesses that provide treatment, such as a dog grooming business or a hairdresser.

Each year, home owners should review their insurance policy to ensure it still covers every aspect of their home and work. It is also worth shopping around each year to ensure you are still getting the best deal to suit your needs.