Can you run your insurance brokerage from home?

With Covid-19 providing a basis to the argument that working from home is the future, we take a look at the key considerations for running your insurance brokerage from home, and a few things to consider when beginning that process.

Do I need permission to run a business from home?

Whilst running a business from home can save overheads when starting up, there are a couple of things that need to be considered before progressing. Firstly, whilst it should be ok, it is worth checking with your mortgage provider if they need to give permission. Additionally, and depending on the size of the home, you may need planning permission if you will require a significant structural change to be made to the home, or if people will be coming and going in addition to any activities that wouldn’t be expected in a residential area.

Can I run a business from home if I rent?

If you are renting a property, you will need to get the landlord’s permission to run a business from home. This may, or may not be, specifically referred to in the tenancy agreement, but if it isn’t then you will need to get clarification before progressing.

Does running a business from home impact home insurance?

The short answer is yes, there will be some impact on home insurance. However, how much depends on the scale to which your business is running. Areas such as contents insurance may need reviewing with more portable electronics being used, as well as motor insurance if any vehicle owned in the household is to be used for business use. Other potential areas to consider would be whether people will be visiting the home office and whether contents insurance covers taking any electronics to a café, or during transport. It will be necessary to get in touch with your home insurance provider to run through what they need to know and how it may change your cover and premiums.

Space and working environment

An obvious consideration and probably one of the first that any prospective new business owner will have, is the space needed to run the business and whether the home is suitable for that. As you will not be carrying stock or products, then this may be less of an issue, but you will want a suitable space to set up a desk and work without interruption.

Tax implications and benefits

There are certain tax allowances available to be claimed for when running a business from home, such as council tax, heating, phone calls, internet and electricity. You will also need to include business costs in your Self-Assessment tax return.

This article has been adapted from Zurich – Can you run a business from a residential property