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 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 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 number of home based businesses taking out public liability insurance isn’t much better than general office 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.
The main reason why home based businesses aren’t covering themselves is because they are under the impression that their house insurance would cover them. When setting up a home based business, many people rarely think of getting office insurance when the entire operation is run from their home, which is 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. Many people see setting up a home based business as a cheap solution, if they were to setup a salon, they would automatically think of getting salon insurance, but when making a home based business, these things don’t come to mind.
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, 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.”
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