Is Your Home Business Properly Insured?

145,000 ‘Homepreneurs’ Mistakenly Think Home Contents Insurance Will Cover Their Business

Research from Direct Line for Business and Enterprise Nation reveals 145,000 home-based business owners have rejected business insurance as they believe their business activities are covered under their home insurance policy.

  • Two in five home businesses admit to not insuring their business
  • Almost a third (29 per cent) of home businesses believe they do not need insurance because they are not big enough

New research1 from small business insurer, Direct Line for Business and Enterprise Nation, reveals 145,000 home-based business owners have rejected business insurance on the basis that they believe their business activities are covered under their home insurance policy.

Home Contents Insurance can often cover office equipment but it does not offer the full cover home business owners need. By relying on their home insurance alone, they are putting their businesses and livelihoods at risk.  

The research also highlights that two in every five home businesses are not insured at all. This lack of insurance puts home businesses at significant financial risk. Operators of these businesses may not recognise the potential liabilities they face. 

One in seven (14 per cent) home businesses have clients visit their home. If a customer is injured, or has their property damaged during a visit, a lack of public liability insurance could lead to financial and legal obligations that could bankrupt a business.

Jazz Gakhal, Head of Direct Line for Business commented: “Home businesses are booming at the moment; they are creating jobs and local wealth, as well as boosting the national economy by around £300 billion.  With that in mind it’s worrying to see that a significant proportion of them have not taken out business insurance to protect their assets.

“Standard home insurance will not necessarily cover stock stored at home and neither will it cover public liability, or loss of earnings due to an insurable event, such as a flood or a fire. Home Business Insurance can be purchased in addition to home insurance and provides essential business cover for a wide range of businesses operating from home. With Direct Line for Business, this costs as little as £532 a year.  That's less than £5 a month to cover you against the potential emotional and financial loss caused by an accident or theft.”

Almost a third (29 per cent) of home business operators believe they do not need insurance because they are not big enough.  However, even a small scale operation could face significant liabilities potentially running into hundreds and thousands of pounds were they to be found responsible for a customer being injured.

Beatriz Garcia-Martinez, who runs SecurelyBe from home commented: “The insurance world can be difficult to navigate for a startup. Depending on your type of business and sector it can require extensive research in to the legalities of business. This is difficult task for small operation to undertake because it can take lots of time and often certain expertise that home businesses may lack.

“Small business owners need insurers to partner with them from the beginning, to help us understand the essentials we need now and might need in the future.”

Small business insurers should offer more advice to new enterprises in order to help them understand their particular insurance requirements. Direct Line for Business offers a simple online tool that can help small businesses begin to understand what insurance is right for their operation.

The tool can be found here:

For more information on Direct Line Home Business Insurance visit:

Notes to editors

1 Research conducted by Enterprise Nation in association with Direct Line for Business among a representative sample of 600 UK home based businesses between 12TH August 2014th and 3rd October 2014

2 44% of customers achieved £53 including Insurance Premium Tax Jan to Jun 2014

For further information please contact:

Citigate Dewe Rogerson
Amrit Nijjer
Tel: 020 7282 2803

Direct Line Group
Simon Henrick
Head of News and Issues
Tel: 0208 313 5965
Mobile: 07833 166 717

Direct Line for Business

Launched in 2007 Direct Line for Business provides a range of insurance products for the small business sector direct by phone or on-line.

Direct Line for Business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line for Business and U K Insurance limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line for Business products or get a quote by calling 0345 301 4827 or visiting

Small Business Insurance Press Release

ADDED: 2nd January 2015