Do You Work From Home?
The work from home necessity over the past two years has become a lasting trend. We are seeing more companies adopt the method for improved staffing retention and productivity increases in some cases. We are also seeing a lot more entrepreneurial startups popping up, beginning at their personal home base. You might wonder, “how does business insurance coverage differ when working from home? Do changes need to be made to the homeowner’s insurance policy? What liabilities are there?” Let’s get into it!
Your Homeowner’s Insurance & Work from Home
At its core, your homeowner’s policy protects the home from expected risks that a common homeowner can have. These situations usually include fire, theft, vandalism, and more. The boundaries of the policy are usually not inclusive to more than what is designed for a “living space”. For this reason, you will probably need to adjust some items regarding your policy if you conduct business out of your home.
What to Consider
As for structural coverage, home insurance has its limits. When looking at your home as more than just a living space, it could be more valuable to you. This is a significant reason to up the coverage limit when it’s serving the dual purpose of living and working quarters. If you lose your home, it could mean losing your livelihood as well and that’s worth making sure you are covered for that amount of loss.
You will also need to consider your items carefully. Do you have an expensive engraving machine or valuable data pertaining to your business in your home? Make sure it’s all listed and accounted for. You will rely on that compensation more since your finances depend on it.
Check your liability coverage. You may already have some protection in case someone suffers an injury on your property, but the coverage limit will not be enough if you are seeing clients there regularly. You will need to consider professional liability.
Types of Insurance that May Suit You
With the wide variety of work that you can do from home, each policy is going to be unique to the situation. Let’s see where you might fall under.
- Looking for a broader option for ultimate coverage? Consider a business owner’s policy (BOP). This coverage is typically helpful for all ranges of business. It includes protection for all types of equipment tied to your business, general liability for property and bodily injuries, and profit disruption coverage to reimburse lost earnings.
- Do you have clients and employees conducting business in your home? You will, at least, need to consider general liability insurance. This policy will help cover bodily injuries, data loss, property damage, and sometimes reputation damage.
- Are you a freelancer seeing no clients or employees and working with minimal equipment? You may be off the hook for extensive coverage, but you should still consider professional liability coverage options. A custom policy can protect you from being sued. All businesses offering services or consulting should have this coverage from that risk alone.
The Bottom Line for Business Insurance & Work from Home
If you are working from home or considering working from home, it’s always best to have a conversation with your insurance agent. They can help guide you through the ins and outs of what extra risks you face and how your current coverage matches up.
Do you need a quick assessment from an agent that understands working from home insurance coverage? Look no further than Greg Fay Insurance. We have several locations! Anyone of us can sit down and evaluate your individual situation with proper business insurance coverage. Contact us today!
