3 million homeworkers “potentially operating illegally”

There are around 5.4 million homeworkers in the UK and 16 per cent (over 850,000) of those employ one or more people. Yet just three per cent (approximately 150,000) have employer’s liability insurance. This insurance is mandatory even if homeworkers only have one staff member on their books.

In addition, just 14 per cent, of homeworkers who were quizzed said that they have business car insurance, despite 66 per cent use their vehicles for business purposes.

Darrell Sansom, managing director of Axa Business Insurance, said, “The number of people working from home has grown by over 20 per cent in the last ten years or so but our research shows that these people take a more relaxed view on insurance than those working from business premises.”

He suggested that most homeworkers break the law unintentionally, but it is vital that they check what cover they need in order to meet legal requirements.

“We would also strongly recommend that people consider what other cover they need to protect what is, in many cases, their livelihoods,” he added.

Homeworkers who meet clients in their home, or those who visit customer premises, may want to think about public liability insurance to protect against any accidents.

People should also inform their home contents provider if they are working from home or they could risk invalidating their policy