Lloyds TSB Insurance has warned Britain's growing home-based workforce to avoid the pitfalls of not having adequate insurance cover.

Figures from the Office for National Statistics show a growing trend in the number of people working from home, with over three million or 11% of the nation’s workforce, based from home. Over 60% of these are self-employed home workers, indicating a strong rise in the number of home-based start-ups.

Lloyds TSB said that it is increasingly important that small business owners have a clear understanding of what they should be covered for and the type of insurance that they need. If workers are unsure of their policy, they should check with their insurance company. A regular home insurance policy may not cover for various work materials and computers.

The insurance provider also extends its warning to those working from home for office-based SMEs.

Phil Loney, managing director of Lloyds TSB Insurance, said: One of the major benefits of working from home is saving time in your day that would normally be spent traveling to work, so employers should take advantage of Working At Home Day and use the extra time in their day to ensure they have adequate cover.