More and more, you’re hearing about companies offering jobs for remote employees. Remote work, or working from home, is increasingly becoming a perk in the workforce and allows for more flexibility than the traditional 9-5 office work. While telecommuting isn’t new, technological enhancements have made the transition from office to home that much easier. This option is now open to many more office workers than ever before.
While you might be relishing in the convenience of working from home, it’s important to understand if you’re covered under your homeowner’s insurance or not. Often, the answer is no. There are some exposures with limited coverage provided by your homeowner’s policy, such as:
Property
Most homeowner’s policies only provide up to $2,500 of business use property at the home. It will not usually cover “sales samples.” Scheduling a computer system with a computer endorsement can increase this limit. However, if you use your “business equipment” away from the home, it would not be covered under your property insurance. If you plan on using any business equipment away from the home property, you may need to arrange for a commercial property policy.
Liability
A homeowner’s policy will provide limited coverage, if any, for any injury incurred by clients at your home. There will be virtually no coverage for “off premises or product liability.” You can mitigate this risk by obtaining a commercial general liability policy.
Auto
A personal auto policy is not designed to cover a personal business, but it can and will protect you in the event of an accident. You may have to explain in detail as to the use of your vehicle after the claim. If the vehicle is owned by a business entity, there may be no coverage at all. Once more, you may need a commercial auto policy.
Worker’s Compensation
Your homeowner’s policy will not provide any coverage for you or your employee’s injuries. You will still need to purchase a separate worker’s compensation policy.
Health insurance
This is the one coverage that is not tremendously affected by where you work.
When you are setting up your home office we recommend you either arrange for these coverages through your employer or have a talk with your personal lines agent and your commercial agent. Ensuring proper coverage protects you in the long run.
Ramey King Insurance is an independent, local Texas insurance agency committed to providing individuals, families and businesses with steadfast risk management solutions. For well over a century our team has helped to protect your assets – whether they be companies, vehicles, property or loved ones. To learn more about our Texas insurance agency, what we do and how our services can be of benefit to you, give us a call today. You can reach a Ramey King Insurance agent at 800-453-9691. We look forward to hearing from you!
