A Third of Homepreneurs Incorrectly Think Home Insurance is Sufficient for Their Small Business
Home businesses are putting themselves at considerable financial risk
New research by Direct Line for Business and Enterprise Nation has revealed that 145,000 ‘homepreneurs’ mistakenly believe home contents insurance will cover their business.
The report reveals that two out of five aren’t insured at all, and 29% of home businesses reject business insurance because they feel that they are not big enough, and commercial activities are already covered by a home insurance policy.
Home contents insurance will not necessarily cover stock, loss of earnings from a flood or fire or public liability. With one in seven home businesses having clients visit their home, this could become especially problematic if injuries or property damage occurs.
Home businesses – an estimated £300bn industry – are putting themselves and their businesses at considerable financial risk, potentially facing financial and legal obligations that could bankrupt a business.
Head of Direct Line for Business, Jazz Gakhal commented: “Home businesses are booming at the moment; they are creating jobs and local wealth, as well as boosting the national economy by around £300 bn.
“With that in mind it’s worrying to see that a significant proportion of them have not taken out business insurance to protect their assets.”
Beatriz Garcia-Martinez, who runs SecurelyBe from home, said: “The insurance world can be difficult to navigate for a start-up business. Depending on your type of business and sector it can require extensive research in to the legalities of business.
“This is difficult task for small operation to undertake because it can take lots of time and often certain expertise that home businesses may lack.”