Thanks to COVID-19, many more of us are working from home. While there are many benefits of working from home, such as protecting the vulnerable as well as saving on commuting costs, there are some additional risks associated with it. If you find yourself working from home or operating a home-based business, you should consider your insurance and ensure you have the right coverages in place.
If you’re an employee working from home, then the business that you work for should provide coverage that protects you – even when at home. That means if a company-owned laptop is stolen, the business can file a claim and receive compensation.
Keep in mind that your homeowners insurance may not cover such claims. If it does, then there will be strict limits as to how it handles the loss. For example, a policy may offer some protection for business property, but there are limits.
The company you work for should also have cyber liability insurance, which will cover incidents such as data breaches and cyber attacks. Even if you experience such a digital event, their insurance should kick to help recover customer data and get the business back on its feet.
If you work from home and are operating a home-based business, you will need to consider taking out your own commercial insurance. Remember that your home insurance policy may not be able to step in to help if your business experiences damage or loss. For example, if your home burnt down, your home insurance would help to recover your personal belongings, but not your commercial property such as computer, inventory, and paperwork.
Your homeowners insurance will cover your liability exposure if a friend or family member is hurt on your property, however, your liability coverage does not extend to business risks. If a client were to come to your home and they were to slip, fall, and injure themselves, your homeowners insurance would not pay out for their injuries and associated expenses.
For your business property and liability to be adequately covered in all sorts of situations, you would need to add an endorsement to your home insurance policy to extend coverage to business risks or take out a commercial insurance policy.
Some other commercial policies you should consider if you work from home include:
- Commercial Property Insurance – to cover the workspace, contents, and lost income in the event of a covered loss.
- General Liability Insurance – to protect your business and assets against claims of bodily injury, property damage, and in many cases personal injury or advertising errors.
- Commercial Auto Insurance – if your vehicle is used to transport clients, business associates, or business property, you often need it insured on a commercial auto policy.
- Commercial Umbrella Coverage – to give you additional liability protection to ensure the highest level of protection for your business assets.
- Errors and Omissions – If you give any sort of advice as part of your business, you could be held responsible for inadequate or incomplete information. An Errors and Omissions policy would cover that risk.
Ensure you have the right homeowners insurance in place. Visit the professionals at McCarty Insurance to get started on your tailored coverage. We can help you understand the ins and outs of your chosen policy.