Over one million people in the UK now have a secondary income from a business which they started during the lockdown, The Express newspaper reports. If you have started a side hustle lately, the publication warns that running a business from private premises can leave you liable to a multitude of compensation claims.

Whether out of necessity to generate income, or as a once-in-a-lifetime opportunity to follow their dreams after being furloughed, many people launched a small business from their homes or became self-employed in the last 18 months. However, without the correct documentation, these people could be putting themselves at great financial risk.

The article explains some of the most common risks for side businesses.

 

Home cooking

Baking cupcakes in your kitchen to sell online may seem like a harmless enough activity, but if your kitchen should catch fire and burn down while the cakes are baking, your regular home insurance may be invalid, and any equipment and stock may not be covered.

You will also need mandatory food safety licences, or you may be facing a compensation claim from a customer who has fallen ill with food poisoning. To protect you against being sued for any accidental damage or injuries, you must take out public liability insurance.

 

Personal training

With gyms forced to close for long periods, many employees started their own online or outdoor training sessions. However, trainers are advised to take on professional liability insurance, so they are covered in case anyone decides to sue for personal injury inflected during a class, equipment malfunction, incorrect advice, and a host of other risks.

If clients are invited into the trainer’s home or garden for exercise, then the correct type of public liability insurance must be taken out to protect them for loss or injury suffered on the premises.

 

If you are looking for small business insurance, visit our website today.