Home Businesses Put at Risk by Not Having Business Insurance
Research undertaken by Direct Line, one of the UK’s largest insurers, has found that a massive amount of home based businesses are not protecting their business with appropriate business insurance. If your business was left unable to trade due to un-seen circumstances, without the correct business insurance, your home based businesses could loose money.
Direct Line have discovered that almost 30% of all UK home businsses haven’t got the correct insurance for their business. Out of the 75% odd businesses that do have insurance, only a small 12% actually have the correct insurance for their home business.
The amount of home businesses that have public liability insurance isn’t much better than standard business insurance. With only 32% of businesses taking out public liability insurance, this leaves a massive 68% of home businesses weak against claims made against them.
The reason why so many home grown businesses aren’t buying the correct insurance is because they believe it’s covered by their standard home insurance. When it comes to setting up a home business, the majority of people forget about getting office insurance when the entire operation is run from their home, which is insured. However, the majority of business owners will be shocked to find themselves being turned away by their home insurers when they try and make a business claim. Many people see setting up a home business as being a cheap solution, however, if they were to setup say a salon, the would always think of getting salon insurance, but when it comes to setting up a home business, it can be forgotten.
As a result of this research, Direct Line recommends that any business without insurance, takes out the appropriate business insurance as soon as possible. That way, if you ever have to make a claim for your business, you won’t be turned away.
Kate Syred, head of Direct Line Business, said this about the research findings. “With so few businesses being protected from a liability claim, or an unexpected pause in trading, this research highlights the need for business owners to think about specific business insurance. Without it, dreams of being a business owner could quickly become a nightmare.”
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