Working From Home? Let Your Insurance Agent Know.

Being able to work from home saves you the hassle of a daily commute, but such a job is not entirely risk free. In fact, having an assortment of office equipment or other work-related tools around the house may put you more at risk. Business equipment you have in your home is an investment in your profession, so make sure it is properly protected.

It’s important to let your home insurance company know about your home-based business because you’ll want to have coverage that matches your unique situation. A homeowners insurance policy is designed for a residence, not a business. Many policies have limitations on coverage for business personal property, and it may be insufficient to cover the equipment used in your line of work. Additionally, there is an added risk to consider when you take work equipment on the road. Some homeowners insurance policies further limit coverage for business equipment if it leaves the premises.

The typical homeowner policy limits coverage of the contents located in your home and used in your home business to $2,500 or less. For some people who work at home with only a laptop and small printer, that may be enough. But it’s not nearly enough coverage if your home-based business has a substantial amount of money tied up in equipment.

Talk to your insurance agent to learn how much coverage you have for business property under your homeowners insurance policy. Most home-based business owners make the wise decision to purchase some form of business insurance. This coverage not only protects your business property, it also offers liability protection.

Your insurance professional will give you valuable advice to help you protect your business, so be sure to keep him or her up to date on any major changes or purchases made. It is also a good idea to put your agent’s expertise to work in helping you come up with a disaster plan to help reduce your risks. With a solid disaster plan and the right coverage, you can be in business for the long haul.

Keep in mind that working from home can mean savings on auto insurance. Auto insurance rates are based on miles driven and if your driving distance has shrunk because you no longer have to commute to a job, you can reap the benefits.

Tips for the home-based worker

  • Establish boundaries so you’ll have a start and end to the workday. This will bring the healthy work/life balance that prompts most people to seek home-based work in the first place.
  • Create a separate workspace. That makes it easier to sign off at day’s end.
  • A daily to-do list will help you stay on track and limit distractions.
  • Working alone can feel isolating, so build variety into your workweek. Plan meetings with colleagues, take a break with a stroll through your neighborhood or visit the local coffee shop to keep yourself connected.
Please remember that the comments contained in this blog are general in nature and that coverage under any specific policy of insurance will depend upon the terms and conditions of such policy.