Yep, that’s right, and believe it or not, working from home can make you vulnerable to risk or loss. As much of the world transitions to a remote working style, it is essential to understand where you are covered, where you are not covered and why additional coverage may be appropriate for you.
What are the risks:
- Property Loss/Liability: if you are using company equipment, you may be required to replace damaged or lost equipment
- Health-Related: since you are working from home, it is not as easy to take a sick day as it may have been before. Your employer may still expect you to be online.
- Financial Loss: in rare but possible scenarios, working from home in a business-client situation can put you in a vulnerable situation if a client is unhappy. Your employer may not protect you in this situation.
What is your current coverage?
Luckily, your employer may cover some of the risks of working from home.
Employers Insurance: in unpredictable times, such as these, it is imperative to review your employers’ insurance policy for a comprehensive understanding of your current coverage
- Worker’s Compensation: many employers will still cover injury or sickness while on the job. However, do not assume. Investigate your policy and seek additional coverage if necessary. If YOU are the business owner, stop what you’re doing right now and get coverage for workers’ compensation. You could face serious financial consequences without coverage if you or an employee is injured.
Where might you need additional coverage?
- Commercial Property Policy: this is similar to an umbrella policy – inclusive of injury, injury in advertising and property damage. Consider this policy a one and done for most employees working remotely.
- Omissions and Errors Insurance: does your job require you to administer advice or work directly with clients? If so, this is highly valuable if a client is unhappy with your counsel or overall service and is seeking financial compensation against you. This coverage will protect your assets.
- Public Liability Insurance: does your job require you to visit your clients at their homes or in a public setting? This coverage will protect you while you are on the go from injury or property damage.
For Independent Contractors and Business Owners
- In-Home Business Insurance: this coverage is similar to an umbrella policy for all business owners, not just remote employees. In-Home Business Insurance covers businesses that make $250k or less against injury, property damage or injury in advertising. This form of coverage is essential for any business owner, only costing approximately $250 per year.
- Business Owners Policy: this policy is nearly identical to In-Home Business Insurance, except for businesses that make more than $250k per year and have more than three employees.
- Business Property Endorsements: this policy extends the standard limit of business equipment coverage from $2,500 to $5,000
In conclusion, start by doing your homework and learn about your homeowners’ insurance policy and your employers’ insurance policy. Based on your finding, additional coverage may be necessary, and that’s where our team can help!