Homeworkers found underinsured

Report finds thousands of entrepreneurs risking livlihood by relying on basic insurance

Thousands of people who work from home in the UK are risking their businesses by relying too heavily on standard home insurance, according to a new report.

More and more entrepreneurs are taking advantage of the flexible working hours and low overheads that working from home can offer.

However, national broker, Quoteline Direct, is warning small home based businesses to consider further protection as reports suggest that up to half are underinsured.

Many home based offices have expensive equipment installed, including manufacturing equipment which businesses are being told must be insured beyond the basic home contents insurance.

Paul O’Gorman, group director at Quoteline Direct, said: “It’s a classic misconception that home workers conduct their businesses from the kitchen table, using the family PC and fax machine.

“Homeworkers insurance is a crucial investment for anyone who manufactures goods to sell, including anything from sandwiches to plant pots. A standard home and contents policy will not cover stock or business cash held in your home. “Public liability cover is also a must if you have members of the public or business clients visiting your home and professional liability will cover you for wrongful advice or charges of negligence.

Home based firms are also advised to pursue a business interruption clause that safeguards the wages of employees as well as finance temporary accommodation in case of fire or flood.

“Too many small business owners don’t realise that their homes and contents insurance won’t cover their business equipment and are unwittingly exposing themselves to avoidable risks.”

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