More and more people are choosing to work from home. Whether they are an independent contractor with a home office or an employee who has taken up their employer's offer to work remotely, people are enjoying the benefits of being at home and working at the same time. Working from home is both convenient and cost-effective, but it does pose specific questions about insurance. Homeowners insurance will cover a variety of things, but a commercial or business policy may also be needed to fill in any gaps that may be created when you establish a home office.
Know What Your Home Insurance Covers
Your home insurance protects your home, your personal possessions and covers any liability you may incur if someone is injured on your property. It may cover the personal items you use for work, but only if you use them for personal tasks. When it comes to items like laptops and other office supplies, it may be best to cover your personal and business items separately. Most people who usually work from home maintain a space in their home that is only used for work-related activities. This is the best way to keep things divided and makes it easier for insurance purposes.
Commercial Policies Are Available for Independent Contractors
Independent contractors who have their own business can choose to have an office at home or rent a different location strictly for the business. If they choose to run the business out of their home or a building on their property, they will need to purchase a commercial policy that covers the items that belong to the business as well as liability coverage. A commercial policy only covers the part of the property that is used for business purposes. The rest is covered under your homeowners' policy.
Make Sure to Fill in the Gaps
Working remotely from a traditional job has its benefits, but it can be confusing when it comes to your insurance coverage. Since you are employed by someone other than yourself, you may be using the company’s equipment, which means it isn't your property to insure. In a situation like this, it's important to know where your employer's insurance leaves off, and your homeowners' insurance picks up. There may be potential gaps in your insurance coverage that you can cover if you have your homeowners' insurance upgraded. You will also need to find out about both health insurance and a Workers' Compensation policy. Talking to your insurance agent will be able to clarify these points and provide you with the coverage you need.
Bringing Home and Business Together
When home and business meet, you will find a few gray areas when it comes to insurance. If you work from home for another company, it's unlikely that you will be using any of your own property for work. What property you do use will more than likely be used by other members of the family, making it personal property. Company property that is used in your home should still be protected through the company's insurance. By understanding where the lines are drawn, you can make sure you have the coverage you need to protect both your home and your business.
Our highly trained agents at Peakes Insurance Agency understand the subtle nuances that are involved in both home and commercial business insurance policies. They are able to evaluate your home insurance policy and help you determine whether or not you need additional coverage to protect any business assets you may have at your home. Contact us today!
