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.

The UK’s Top 15 areas for home business owners

 

All

All

Home business owners  as a % of Total workforce

All Workers

Home business owners

Herefordshire

27%

92,379

25,084

Pembrokeshire

23%

43,581

10,215

Eastbourne

20%

39,664

8,074

Cotswold

20%

40,591

8,216

Penwith

20%

27,490

5,559

Rochford

20%

39,499

7,973

Caradon

20%

29,649

5,971

Powys

20%

63,990

12,853

Worthing

20%

51,846

10,269

Eden

20%

29,798

5,851

Kensington and Chelsea

19%

84,174

16,011

West Oxfordshire

19%

49,209

9,305

West Devon

19%

23,835

4,500

Shepway

19%

49,059

9,206

Wandsworth

19%

175,858

32,840

Source: Direct Line 4 Business analysis of ONS Labour Force Survey

 

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One Response to Why home businesses need special insurance cover

  1. Richard Jones says:

    A great article to help ‘educate’ the public. So often people think that they are covered for everything and as one of your other articles points out, this is not the case.

    Good work

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