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Home Based Businesses Are In Danger With No Insurance

   

Direct Line, one of the UK’s largest insurers, has found that many small home based businesses are putting their business at risk by not taking out 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 around 28% of all home based businesses are not insured correctly. Out of the 75% that do have some kind of insurance, only a mere 12% actually have sufficient cover for their business.

The number of businesses that cover themselves with public liability insurance isn’t much better. 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 the entire operation is run out of their home, which is insured. However, when it comes to make a business claim, the majority of business owners will be shocked when they are turned away by their business 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 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.

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.”

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This entry was posted on Friday, November 27th, 2009 at 12:58 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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