Half of Home Businesses uninsured

Almost half of home-based businesses do not have business insurance cover, according to online insurance provider Insurantz.com


Their survey of 1,040 home businesses revealed that 45% did not have any business insurance cover. The research found that home-based business-owners are failing to take out business insurance, because they believed their home contents insurance would provide adequate cover.

According to the Association of British Insurers (ABI), while businesses are only obliged to take out insurance cover in a few areas — for example, employers’ liability is a legal requirement for all employers — taking out other business insurance cover just makes good sense. ABI spokesman Malcolm Tarling said:

“Most household contents policies will not automatically cover business use and in many cases, the risks for home businesses can actually increase, such as malicious damage or theft, because home security may not be as effective,”.

“Anyone who works from home, either running a full–time business or a part–time venture, needs to make sure they are adequately covered. Check with your existing contents insurer. They may be willing to extend cover, often simply charging an extra premium depending on the nature of the work. If not, then you should talk to an insurance broker, as there are specialist polices to cover people working from home.”

Insurantz.com managing director James Pickering said online retailers, such as home–based eBay entrepreneurs, were also often unaware of their obligation to protect customers under the Sale of Goods Act.

“A significant number fail to take out product liability insurance, which could safeguard them from legal action or loss of revenue in the event of a customer being injured or their property damaged. There’s confusion surrounding the responsibility that business owners have to deliver goods that are both fit for purpose and of satisfactory quality,”

“Ultimately the buck could stop with the seller, so businesses trading on eBay need protection to prevent financial penalties and even legal action if the goods they are selling turn out to be faulty, or worse, dangerous.” he added.

To find an insurance broker in your region visit the British Insurance Brokers’ Association website or alternatively, read our article on insurance to protect your business.

Almost half of home businesses are uninsured

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