Affordable Insurance EZ

Posts Tagged ‘home business’

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 you don’t take out the correct business insurance, you could find yourself in trouble if you are unable to trade, therefore not earning 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.

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. 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 correctly covered in the event of a business based claim.

The head of Direct Line Business had this to say 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.”