New research has shown a growing trend of Brits starting up home businesses as both a primary income and as a convenient way of topping up the family finances.

The survey showed that 1400 people each week set up a business at home, adding to the nearly 200,000 so-called “e-trepreneurs”, who make their living buying and selling on the online marketplace eBay. The researchers said that the trend would continue as major companies are expected to lay people off due to the credit crunch.

Sadly for those choosing this path it appears that many are neglecting adequate home insurance cover. A Standard home insurance policy will not cover thefts and damages related to the business, so it is essential that extra insurance is taken out to protect the fledgling companies.

James Pickering from Insurantz said: “Setting up a home business can offer a great way to supplement income and cope with rising costs. But...the reality is that, from an insurance perspective at least, home business owners face exactly the same risks as any other businesses. EBay traders, for instance, often keep stock at home, ready to sell, but may find it is not covered by traditional household insurance if it is damaged or destroyed.”