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Why home businesses need special insurance cover

home businessHome business owners are urged to check out their home insurance as new figures show more than 2.5 million now work from their homes

The total is just over half (52%) of all small businesses and 8% of the nation’s workforce.

According to the figures, men are more likely to work from home – with around 820,000 women running their own businesses compared with 1.7 million men.

A Real Business Report The UK’s top 25 businesses run from home highlighted the main home business sectors as e-commerce, travel, marketing, recruitment and legal services.  Other favourite occupations include catering, photography, hairdressing and creative media.

Herefordshire is a hotbed of home businesses, with 25,000 working from home – 27% of the county’s workforce.

People are least likely to work from home in the North.

Home businesses are unlikely to have cover under standard buildings and contents insurance.

One main exception is public liability insurance, which covers businesses if a customer or visitor to the home suffers death or injury as a result of the business. Home insurance does not include this cover.

Other business insurance considerations for home business owners include:

  • Computers, hardware and business equipment cover
  • Insurance for loss or damage to stock or raw materials
  • Business use cover for cars and vans
  • Employee liability cover if someone else is on the payroll

Depending on the business, the home worker may need contractor liability, professional indemnity cover and insurance for goods in transit.

Loss of earnings with business interruption cover is also something to consider.

Although Herefordshire is one place with a higher than average number of home workers, the numbers are reasonable spread around the regions, with a slightly higher proportion in the Home Counties and Midlands than elsewhere.