What Type of Insurance Do You Need if You Are Working From Home?

Your insurance needs while working from home will depend on whether you are an independent contractor or work remotely as an employee for another company. Either way, knowing what type of insurance you will need is extremely important. Working with a reputable insurance agent will allow you to get the type of insurance you need to ensure that your business and home are fully covered.

Assets and Inventory

The equipment you use to operate your business, as well as any inventory that may be owned by your business, needs to be covered by a commercial insurance policy. Business assets and inventory will not be covered by your homeowners’ insurance because it isn’t used by you or your family for personal use. Maintaining an accurate inventory list of all the assets of your business is essential, so you know how much commercial coverage you will need.

Business Liability

Business liability insurance is also a must. Liability insurance will cover you if someone is injured while on your property for business reasons. Business liability also covers product liability if a product or service is damaged or defective. This type of liability also covers defective workmanship. Having this type of liability insurance protects your business from extensive financial loss if it is proven that your company is at fault. Business liability can take many forms. The type of business you have will determine what type of liability insurance you will need to fully protect your business.

Workers’ Compensation

Workers’ compensation is required by most states, even for sole proprietors and independent contractors. If your company employs more than one person, you will need to purchase a workers’ compensation policy to protect your employees if they are ever injured while on the job. If you are the only employee of the business, you may have the option to opt-out of purchasing workers’ comp insurance if you file the required exemption paperwork with your state.

Health Insurance

Health insurance is also needed if you work from home. If you are self-employed, you will need to find a policy that you can afford, as well as one that gives you the level of coverage you are comfortable with. If you are working remotely and are employed by an employer who offers you health insurance coverage, you will need to make sure they are still covering you even though you are working from home. In most cases, employees who offer to work remotely are allowed to retain the same benefits as other employees who have chosen to remain in the office.

Bridging the Gap If You Work Remotely

There are several gaps in coverage between homeowners’ and commercial insurance. Working with your employer will help you determine what is covered by the company and what you need to cover on your own. If you are self-employed, you will need to discuss your options with your insurance agent so that all of the gaps are filled and that your business and home are fully covered. Your insurance agent can close these gaps and make sure that you have everything you need to protect your financial investment in your business.

Our agents at Pittman Insurance Group LLC are able to evaluate your commercial insurance needs and provide you with policies for both your home and business. Whether you are an independent contractor or are working remotely, it is up to you to protect your investments. Contact us today to discuss your options.

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