Does Home Insurance Cover Work-From-Home Practices?
Working from home used to be considered a luxury. These days, it’s more like a necessity. Many businesses have been able to keep their operations running thanks to the flexibility that working from home can provide.
Home insurance covers many things, but does it include working from home? And does working from home affect your home insurance? The answer to these questions is, it depends on the type of employee you are.
Home Insurance Is Not Business Insurance
Even if your kitchen table is now your office space, when it comes to insurance, things remain separate. Your homeowner’s insurance will continue to protect you, but it is limited to personal activities and personal property. Whatever you use strictly for business falls out of that coverage. The risks that may affect you as a homeowner are different from your chances as a business owner or employee.
Your insurance needs will vary depending on whether you work independently and are a full-time employee. Independent contractors are considered business owners from a legal perspective, which means they cover their liabilities, pay their taxes, and buy insurance for themselves to protect their equipment, home office, and inventory.
On the other hand, full-time employees that work remotely should be provided insurance coverage by their employer. Their obligations include paying half of the taxes of their remote employees, cover any business-owned equipment, and provide liability coverage for work-related activities.
Filling Your Work-from-Home Insurance Gaps
If you’re an independent contractor, reach out to your insurance agent to help you identify your insurance needs and choose the right coverage for you. Typically, you will need business insurance that covers:
- Business interruption
- Liability related to business injuries, whether they happen on or off your property
- Business property, while your home or not
If you’re a full-time employee working from home, you should talk to your supervisor to ensure the company provides you with the type of coverage you need, including:
- Liability coverage for injuries that may happen to business guests while on your property
- Worker’s compensation in the event you get injured while working
- Limited personal property coverage, while you’re doing work-related activities
- Business property in your hands while working from home