Home Business Insurance, is it needed?

Home-based businesses are taking unnecessary risks by not taking out adequate commercial insurance cover, according to research from Direct Line for Business. The study found that 28 per cent of home-based companies have no form of business insurance at all, with just 12 per cent having sufficient protection if their business was temporarily unable to trade. Furthermore, only 32 per cent of at-home businesses people have taken out public liability insurance, and just 11 per cent have product liability insurance, putting themselves at risk from claims made against them.

The majority of businesses based at home have not taken out business insurance and leave themselves vulnerable to being unable to cover the cost of a crisis, Direct Line for Business warns. Kate Syred, head of Direct Line for Business, said: “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.” When you decide to “work from home,” please take the time and discuss it with your home owners insurance policy company. Tell them your now operating a business out of your house and find out what coverage’s you need. A lot of times you can find discounts since you already have a policy with your company. Don’t blow this off and think its not important, the last thing you want is to lose your home over some product you sold on the internet!

Guest Blogger Trevor Poulson