If you are self-employed and work from home there are probably many perks to the job such as convenience and being your own boss. However, anyone who has been self-employed for a significant period will tell you it's a risky business - particularly if you're not comprehensively insured.

Taking out home insurance for your building and its contents is one thing, but when you run a business from home you require a completely different standard of cover. Certainly it's important not to overlook the standard features you would expect on a typical home insurance policy, and to value your contents and the rebuild cost of your home accurately, but there are specific measures you must take note of.

Firstly check all your business contents - such as laptops, fax machines, PCs - are covered against loss and damage. It's a good idea to take out an 'all risks' option on your business equipment - meaning they are covered for damage away from the premises (particularly for items such as laptops and mobile phones).

From there, ensure your policy offers liability protection that includes employer's, public's and tenant's liability. Legal expenses are important too and a good business home insurance policy will cover these as standard.

However, perhaps most importantly, will you be covered if an insured event, such as a fire, forces you to miss work time? Some policies do include 'business interruption' that covers your loss of profits.

Examine your policy carefully and look at the optional extras. Some policies will also cover computer breakdown and failure of computer equipment, which can be particularly important if you lose records.