Working At Home: Business or Homeowners Insurance?
If you work from a home office, should you take out a business insurance policy to protect your work?
A homeowners policy will not protect your work in the event of an accident or injury. In fact, many homeowners policies specifically exclude business expenses. Any property coverage that you have in your homeowner’s policy may cover property where your work just happened to take place, but it will never specifically cover your work.
This means that the shed in your backyard is probably not covered in your homeowner’s policy, so if you choose to make that shed your office, you won’t be covered there (but your spare bedroom that you turned into your office will be). That will not, however, include coverage for any business records or data that may have been lost. You will also not receive loss of income coverage from your homeowner’s policy. Liability is an even bigger concern for some home businesses. If you have other employees working out of your home, your homeowner’s policy will not cover you if your employees are injured on the job.
Alternative Coverage Options
You may not need to take out an entirely new policy for your home business. Some homeowners insurance carriers offer “endorsement” programs that will extend your homeowners coverage to include your business. This may be best for smaller business practices or freelance scenarios.
If you do have more than one employee working from your home, it’s probably time for you to consider a separate business policy that will cover everything your homeowner’s policy doesn’t. That will include everything from your office space to your stapler, along with any electronic data and any liability potential. If an employee trips and breaks a leg in your home office, you’ll be covered under your business policy, not your homeowner’s. If you run your office out of the shed in your backyard and it is destroyed by a hurricane, that will be covered by your business policy as well, and not your homeowner’s.
How To Purchase
To start, you’ll want to have a number in mind for the value of your business as well as your potential risk. What would you lose in a fire that you would need coverage for? How many people enter and leave your home office every day? How safe is your electronic data, and how much would it cost to recover it? Find your answers to those questions, then contact an agent to discuss different carriers so you can get the best, bias-free coverage possible.
Speak to an InsureTN agent today to get your Tennessee business covered. Read about our business coverage and Call 615-964-5250.