28 December 2009
Direct Line Find 25% Of Home Businesses Aren’t Insured
Posted by articleranks under: Money .
Research undertaken by Direct Line, one of the UK’s largest insurers, has found that a massive amount of home based businesses are not protecting their business with appropriate 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 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. Only a mere 32% of businesses have public liability cover, which means that the other 68% are not covered if a claim was made against them or their business.
One of the main reasons why home businesses are not being covered is because many people believe their home insurance will cover their business. The majority of people, when setting up a home business, forget about getting appropriate office insurance when the entire business is run from your home, which is fully 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. 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 making a home based business, these things don’t come to mind.
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 correctly covered in the event of a business based claim.
Head of Direct Line Business, Kate Syred said the following about the 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.”