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Advances in technology and the desire to be one's own boss has led to a dramatic increase in the number of people setting up businesses from home. According to a survey from Enterprise Nation, more than 60% of new businesses in the UK are started from home - this equates to more than 1,400 new businesses each week.
What's more, according to the survey, out of 4.5m SMEs, nearly half (2.1m) are based at home.
Growth areas
The highest growth in home business is coming from mums, young people and the over-fifties. And the fastest-growing sectors for home businesses are in the business and professional services sector (such as accountants and website developers), online trading (on websites such as eBay), personal services (such as interior designers, hairdressers, party planners), food (products and caterers), and domestic energy (including people selling excess DIY 'green' power back to the national grid).
Of course, as is the way for many new businesses, the line between success and failure can be quite thin to begin with and the last thing you would want is for something to happen that could seriously affect your business or, in the worst case, put you out of business altogether. That is why having proper and adequate home business insurance is vital and Direct Line for Business cover can provide you with the security you need.
If you are working from home, it is vital to understand that your standard home contents insurance will not provide you with all the cover you might need. It's possible that certain contents may be covered, but it is likely that there are exemptions under domestic cover should your business property be damaged or stolen while at home.
Having proper business contents cover can protect your business assets and your products should you be a victim of vandalism and/or theft, as well as in cases of accidental damage. However, there are all sorts of business-specific cover that you might not realise you could need. For instance:
- Product liability insurance: If you manufacture or supply goods, there's always the possibility that your product could cause damage to a third party - that could be property or another person. A small defect could open you up to claims, so this cover is vitally important for product manufacturers.
- Public liability insurance: This covers you against any claims made against your business, for example, if you were held legally liable for personal injury, or for damage done to property. Public liability insurance will also cover you for any legal costs associated with defending claims against your business.
- Goods in transit: You may think that by transporting goods in your own car that you are covered by your car or Van Insurance. This may not be the case and you could lose out if you need to make a claim. Having the right business cover for when you are transporting goods can help you should you have an accident or be a victim of theft.
- Business interruption: Should you be forced to stop trading altogether for reasons such as major fire or theft, it could signal the end of your business. Proper cover could help to get you trading again.
These are just a number of the areas covered by Direct Line Business from Home Insurance. You can find out more about our home business policy on this website.
Related information:
Working from home - you'll need to consider getting extra insurance, but also your tax situation and certain legal issues.
Keeping accounts - read our guide on keeping accurate accounts for a small business.
Van Insurance - get a quote and buy online direct from us.
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