Remember Business Insurance When Setting Up a 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. By not having the correct business insurance, you could find yourself loosing money if your business is unable to trade for a certain amount of time.
Direct Line have discovered that almost 30% of all UK home businsses haven’t got the correct insurance for their business. Out of the total number of home based businesses that actually have business insurance, only a mere 12% actually have the correct cover.
The number of home based businesses taking out public liability insurance isn’t much better than general office insurance. With only around 30% of home bussinesses taking out public liability cover, it leaves the other 70% left without cover if a claim was made against their business.
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, many business owners will be shocked when they are turned away by their home insurer when they try to make a business claim. Many business minded people would see setting up a home business as being a cheap and quick solution, however, if they were to setup anything else, as an example, a salon, they would always think of getting appropriate salon insurance, but when it comes to home based businesses, it slips many people’s minds.
Direct Line recommends that if your home business isn’t yet insured, you take out the appropriate insurance as soon as possible. That way you are covered for any problems that may occur during your home business career.
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.”
