Where increased cost of working cover is included in a home business policy, this will usually provide cover for up to:

In the context of a home business policy, increased cost of working cover is designed to protect the insured against additional expenses incurred in the course of running a business from home, especially when a loss disrupts normal operations. The correct option indicates that this cover typically provides a limit of up to £10,000.

This limit reflects a reasonable amount that can help cover temporary costs such as renting equipment, hiring additional employees, or other necessary adjustments to keep the business running following an unforeseen event, like a fire or flood. Policies generally set these limits based on the expected costs for small home-based businesses, ensuring that while adequate for immediate needs, it also remains manageable in terms of the insurer's risk exposure.

Options indicating higher limits would usually pertain to more extensive commercial policies or businesses with larger operational scales, which typically fall outside the scope of standard home business policies. Thus, the figure of £10,000 has been established as a common benchmark for this type of coverage.