Many of us will ensure to protect our homes with a homeowners insurance policy. We understand the need to secure our property and minimize risks while also transferring risk. A the same time, we may not know if different activities are covered under our respective insurance policies.
For instance, one trend over the past couple of years has been working from home. While remote workers may be able to save commute time and related costs, it is vital for individuals to genuinely understand what is covered about their work and what is not.
This is even more important because of the recent global health event.
The COVID-19 pandemic has led to many changes in our daily lifestyle, one of the most important being the normalization and accelerated trend of working from home. As a result, at this present moment, many people are still working from home, while others have started their businesses or freelance careers. To understand how working from home affects home insurance and whether it will cover working from home, continue reading this brief guide.
Does Your Homeowners Insurance Company Cover Work From Home?
Working from home has many benefits, but what about insurance? We need to make sure that a policy covers our work-related needs before diving in.
There are many types of insurance, but the traditional type of insurance is not intended to cover home-based businesses. The homeowner insurance policies will likely not cover injuries that may occur while you are professionally based in your home. However, it is possible to update your home insurance and highlight that you are using your home for business purposes, whether it is your business or continuing your regular 9 to 5 job from home.
Insurance Needs May Vary Based On Your Specific Situation
When working from home, whether full-time or part-time, you are still an employee and, as such, need the appropriate insurance to protect yourself.
You are either a full-time employee of another company or your own. If you are running your firm, it may be best to obtain business liability insurance and to speak with your insurance provider on your insurance agreement.
Lately, most home insurance policies meet this general rule or will seek to accommodate those who are working from home. The exceptions to this general rule can be found within the context of each case. That's why it's important always to check the policy and see if its terms and conditions match your expectations for home insurance. It all depends on whether it is your health that you want to insure or the equipment you own, and depending on that, you will have to consider the most suitable and personalized policy for your case.
Speak with Your Employer To Understand Your Insurance Coverage Options
Another very common case is employees who have just switched to working from home. In this case, the company needs to make sure that they compensate you if something happens to you while on their property, such as accidents or other injuries. You must define these aspects with your company's human resources manager beforehand and check if their policy covers insurance when you work from home. If not, you can look for parallel coverage.
Especially with the pandemic, most companies provide insurance for working from home, but since they are not legally required to do so, you may need to discuss this before you begin your work from home.
Homeowners' Insurance Policies May Provide Holistic Coverage
Homeowners insurance is a must-have for those who own homes. It covers you and your family and the contents of every room.
It will help to cover any losses you may incur, such as theft or damage during an event like a fire when there's no one around. In most regions, you must meet specific requirements to be insured when you work from home:
Your employer has asked you to continue working from home;
Any meetings you have are done virtually;
You do not provide services that are face-to-face with clients;
If you have client meetings at home, you must inform the company.
Work with An Insurance Agent On Business Related Claims
If you have a potential business and require employees to come to your home, you will need to accommodate that. Further, insurance for your employees when they work from home is necessary. In other cases, where you are working for yourself and not another business, you will need to modify or add to the insurance to suit your needs. This may take place with a liability insurance policy.
To insure yourself and your employees, you must contact a company like the Thumann Agency for optimal insurance. It is necessary to reach out to understand your needs for additional coverage.
The respective policies that they offer cover injuries and the equipment provided by your business. However, if the equipment exceeds a specific value (thousands of dollars), you will need another policy as the traditional policy does not cover it.
Always Do the Research When It Comes to Your Insurance Needs
The insurance policy is very relevant, especially if traveling and all work-related equipment stay at your home. It would help to insure equipment as it may be subject to theft or potentially damaging situations. You can always approach your insurance agent at the Thumann Agency specifically about your case, and premiums will likely increase.
It is a great responsibility for you if you happen to manage a great deal of costly equipment because if something happens to these items, you will have to reimburse them, and that is why you must look for insurance that best fits your needs.
Insurance Needs Will Vary For an Independent Contractor or Business Owner Versus an Employee
Those who run their own business may need to think about a business owner's policy, an errors and omissions policy, or a general liability or umbrella policy. Whether you are dealing with business equipment or conduct a large portion of your business from home, it is best to ensure that you are insured.
In some cases, you can find coverage by simply considering additional insurance for your existing homeowner's policy. Different businesses require different levels and kinds of coverage, but no matter what type you have - we're here to help.
The Thumann Agency Can Offer Advice and Custom Insurance Quotes
It depends on whether you need insurance when you work from home. In some cases, if you only work with simple equipment such as a laptop or a phone, as most individuals, you may not need insurance because the equipment is already covered by the company that employed you.
However, if this is not the case, and you consider the value of the equipment to be high, and you need to be assured that the equipment is safe and not to worry, you should contact an insurance company.
It would help if you discussed with them the particular risks you want the equipment insured against and agreed on the terms and conditions.
Working from home has its benefits and responsibilities. That's why it's important to talk to your employer or look into the insurance options if you have your own business. Remember that you don't need to be insured if you work with simple equipment, as this should already be certified by the company. However, if your case is more complex, don't hesitate to find the most advantageous insurance offer for you by doing your research and talking to the parties involved. Call us at 972.991.9100 to schedule an appointment today!