Does Home Insurance Cover My Baby Minding Business At Home?

Caeva O'Callaghan | March 11th, 2024

Does Home Insurance Cover My Baby Minding Business At Home?

If you’re thinking about starting a childminding business at home, there are plenty of things to consider. Insurance may be one of the first things on your mind – so will your normal house insurance cover your new venture?

No. Your home insurance will not cover any business you do at home, including childminding, cooking or crafts, or working for your employer from home.

You can often get extra home business cover added to your policy for little or no additional charge, so this may be worth looking into.

In this article, we’ll cover the following questions:

• Does home insurance cover my home business?
• Do I need business insurance if I work from home?
• What risks are involved in working from home?

It all depends on what you intend to do, how you intend to do it, and if you are pursuing it as a professional career rather than “odd jobs”.

Does home insurance cover my home business?

Not on most standard policies. In fact, liability is specifically excluded from you carrying out any trade, business, profession or employment in home insurance documents.

When the coronavirus pandemic hit Ireland in the first quarter of 2020, many people were furloughed or asked to work from home. Many more decided to start home businesses for a little extra income.

However, the surge in home-based work activities did little to affect how insurance companies calculate risk. This is because normal desk-based work – even when done in the home, rather than an office – doesn’t require taking any risks you wouldn’t do on a day off, so your home insurance would stay the same. You only need to inform your insurer if your work includes risky activities or meeting members of the public.

So, for example, a software developer would be able to work 100% remotely, and would not need to inform their home insurance. A counsellor who needs to meet with clients in their own home would need to inform their home insurance. And a hairstylist or childminder, for whom having people in their home would be a vital part of their business, would absolutely need to tell their insurance, because the risks would be greater.

Do I need business insurance if I work from home?

You may need extra business insurance, depending on what you do. If your work requires little risk, such as a software developer or freelance writer, then you do not need extra insurance.

Childminding is a job that is fraught with risk, to you, your home, and the children you look after – but again, it depends on your individual circumstances. Usually an insurance company is happy enough if you are minding just one or two babies on an irregular basis for a little extra money, or to try out a new business venture.

However, if you plan on going full-time, then the risk factor changes. You become a “legitimate” business and are faced with all connected responsibilities, such as tax and insurance. In the case of childminding, you have extra considerations such as new smoke alarms and sanitation.

No matter what you plan to do, it is always better to mention your business plans to us either when you first take out a policy or at the renewal stage, even if you are just thinking about it.

What risks are involved in working from home?

If your job is desk-based, not much aside from your normal house-based risks covered by your home insurance. But if your work includes physical work, chemicals or members of the public, then it’s a different story.

When others visit your home, risk of illness or injury is much greater. Depending on the business type, your insurance provider may request – or outright insist – that you purchase a business insurance policy, which will include third party liability at a minimum. This will cover you if someone gets sick or hurts themselves in your home.

When contact with members of the public is unavoidable, it’s a good idea to keep the visits as short as possible. Wash your hands often, have hand sanitiser available, and wear a mask and gloves if appropriate. Install a fire alarm in every room, and test them regularly. Have fire extinguishers nearby, and be aware of any food allergies the children under your care may have.

We can help you with any questions you have about your home insurance!

If you are thinking of minding children in your home or setting up a home-based business, pick up the phone and talk with our experts today and we can answer all your queries and make sure you are adequately covered. We are available to talk by phone between 8.30am and 5.30pm each weekday on 0818 224433 or 042 9359051.

If you would like an instant home insurance quote online, you can use our online home insurance calculator. We compare home insurance in Ireland from 13 of Ireland’s leading insurance companies.