Following news that one in five people are now considering setting up a business from home, potential homeworkers are being encouraged to check that they would still be covered by their home insurance policy.

A survey of 1,200 homeowners by insurer Swinton, found that many are now considering starting their own business venture from home because of job cuts or being unable to get a job in their area of expertise in the current climate.

Although 37 per cent said they might have to consider working from home on a self-employed basis because of redundancy, 22 per cent said that working at home would be the ideal situation for them, as it would enable them to balance work with other commitments.

Swinton has urged anyone considering starting to run a business from home to consider the insurance implications.

Steve Chelton, Insurance Development Manager at Swinton, said, "It is essential that anyone considering working from home alerts their policy provider and makes sure any additional items of work equipment such as computers, phones, fax machines etc. are added to their existing cover.

"Standard contents insurance covers the policy holder and their immediate family that resides with them. However, if an employee is joining the household during the day, it is important to alert your insurer immediately," he added.