Home Based Businesses Are In Danger With No Insurance
Research carried out by one of the UK’s largest insurers, Direct Line, has found that many home business owners are leaving their business uncovered by not having the correct 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 found that almost 30% of UK based home business don’t have any 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 based businesses that take out public liability insurance isn’t a great deal better than those taking out business insurance. Only 32% of businesses actually have public liability insurance, which means that over 65% of home based businesses are not protected against claims made against their business.
One of the main reasons why home businesses are not being covered is because many people believe their home insurance will cover their business. When many people setup a home based business, they forget to take out suitable office insurance when the entire operation is run out of 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. The majority of people see setting up a home business as a quick and cheap solution, however, if they were setting up something like a salon, they would always think of getting salon insurance, but when you go to setup your own home based business, getting insurance can slip your mind.
Direct Line recommends that if you’re home business isn’t yet insured, you take out appropriate cover as soon as possible to protect your business. That way, you are correctly covered in the event of a business based claim.
Head of Direct Line Business, Kate Syred said the following about the results. “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.”
Tags: business, business insurance, home based business, home businesses