3 million homeworkers “potentially operating illegally”

More than three million homeworkers are potentially operating illegally, Axa Business Insurance has warned.
3 million homeworkers “potentially operating illegally”

January 15, 2013

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 

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  • Alan Matthew Gingles

    I think the government spends enough on illegal wars and on charity imperialism for me not to carew

    • Robin Hodson

      What’s “charity imperialism”?

  • Robin Hodson

    Well, this insurance would only be claimed if an employee takes you to a tribunal, and who takes themselves to Court?

  • Robin Hodson

    If the homeworker becomes self-employed, they’re a subcontractor instead of an employee: Problem solved!

  • Christopher Rev-Ripshears Paul

    Robin I think they mean 1 employee other than themselves….

  • Jason Drobig

    We all have to make an living!

  • Simeon Parris

    Just another excuse for the insurance companies to squeeze even more money out of us.

    • Vasantha Narayanswami

      not at all..insurance was created to protect non-wealthy people.It is sound Financial Education/ risk management to have it(esp if you are a homeowner,have children or both…it is essential) BUT the banks HAVE abused the system and made it SO expensive that many people can’t afford to protect themselves and then end up losing out financially when a disaster occurs.I know as I am a Financial Educator…my job is to expose the banks and I’ve had to deal with so many business people who have lost their incomes/homes/businesses when disaster has hit…very sad.

  • Suzanne Kirk

    If you choose the right insurance companies then you only need to buy PL insurance as an extra. Business equipment and stock can be added to your house and content insurance. Car use can easily be added to your car insurance. And these additions do not affect your usual rates.

  • Emily Coltman

    I am curious as to why limited companies whose only employee is the director/shareholder need employer’s liability insurance… you’re hardly going to sue your own company! That’s just daft!

    • Richard Alvin

      I am aware of a company (a surveyor) who had to just that when the director couldn’t work following breaking his leg falling off a ladder. Technically the company should have risk assessed the ladder use, it slipped down and he broke leg. All advice was sue legal entity as different from person & insurers duly paid up no question. Company would have gone under, and he would have struggled if he hadn’t been able to fee earn/take salary for 3 months.

  • Jon S

    Id say there as many if not more than dont have contact details on their website, I dont mean a contact form or mobile phone number, I mean address as is required.

  • Funtastic Nets

    With what ever job you do i think you should have cover, If you run a business from home, office, mobile or shop. I can not work in my line of business with out it, and also some jobs have requested to see that I have adequate cover to do the job.
    Any person I sub-contract to work also needs to have PLI, always better to be safe than sorry!!!

  • Michael Birchmore

    Did you know that if you have employees who work at home you are still liable for their health and safety?

  • Craig Sampson

    Looks like you have the zanny intrusive laws against employers as we do..

  • Derek Mansfield

    OMG. Does this mean AXA insurance will launch automated telecanvassing campaign to all the home employed? I’m losing the will live having read this.

  • Julien LeFevre

    I need one of those jobs! lol

  • Rex Rich

    A very successful chap I worked for years ago always said if he followed the letter of the law he wouldn’t be in business . I add that he wasn’t a ‘crook’ and was a pretty good employer.

  • Rex Rich

    My partners late father was an insurance broker but only ever had what the law required…car insurance etc.

  • Peter

    Direct Line offer free business use with their domestic car insurance. I’ve just renewed by insurance with them – it cost me £159 fully comprehensive..

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