Christian Little

Direct Line has found that a huge number of UK based home businesses are putting thier business on the line by not having the correct business insurance. If your business isn’t covered with the correct insurance, you could end up loosing money if your business is ever unable to trade due to un-seen circumstances.

Direct Line found that over 25% of all home based businesses don’t have the correct insurance to cover themselves. Out of the total number of home based businesses that actually have business insurance, only a mere 12% actually have the correct cover.

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 biggest reason why businesses aren’t being covered is because when it comes to setting up the business, people believe their business will be suitably covered by their home insurance. When it comes to setting up a home business, the majority of people forget about getting office insurance when your entire company is run from the inside of your house, which is all insured. However, when coming to make a business claim, many business owners will get a shock when they are turned away by their home insurer. 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 it comes to setting up a home business, it can be forgotten.

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 covered for any problems that may occur during your home business career.

The head of the Business section of Direct Line, Kate Syred, said this about the research 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.”