Home is where the insurance isn't for entreprenuers

Two in three entrepreneurs working at home do not have adequate insurance for their business, according to new research.

The study, conducted by Norwich Union, found that two-thirds of homeworkers did not have separate business insurance as they mistakenly believed that they didn’t need it or were covered by their home contents policies.

Worryingly, a further 41 per cent of those questioned did not have public liability insurance – a policy that Norwich Union said was “essential” if clients visited their homes.

The survey also revealed that homeworking was not an easy option for entrepreneurs, with two in five of those quizzed claiming that they worked more than eight hours a day.

According to the study, 47 per cent of home-based entrepreneurs worked for more than 45 hours a week – the national average is 39 hours – while over three-quarters dedicated their weekends to their businesses.

Although nine in ten of those questioned said they worked from home to enjoy a more flexible lifestyle, many admitted to working longer hours than their office-bound counterparts.

Despite the long hours put in by homeworkers, 62 per cent admitted that their friends and family assume that they spend time watching daytime TV and lounging around on the sofa rather than working.

• Establish a daily routine. Create a realistic routine to help you stay focused and motivated and allow for non-work breaks too.
• Create a dedicated work area.
• Build a support network of business contacts that can keep you abreast of market trends and industry news.
• Learn how to deal with interruptions but make clear to other household members that you must not be disturbed while working at your desk.
• Get out of the house regularly to ward off ‘cabin fever’. Schedule business appointments and meetings away from your home if possible.
  

Isabel Baumber, of Norwich Union said that the fact that many homeworkers may not have adequate insurance is worrying, but not surprising considering the other pressures they have to contend with.

“It’s essential that those working from home check whether they are covered, particularly if they employ others or have clients visiting their homes.

“It seems that general perceptions of homeworking are long way off reality.

“With more people turning to homeworking to address their work-life balance it is essential that they understand it’s not an easy option,” she said.

To help tackle the lack of insurance cover, Norwich Union is now offering a ‘one stop’ insurance product which combines both home and business policies. To find out more, visit www.norwichunion.com/