With the advancement of technology, the work at home business and telecommute choices are growing rapidly. Current estimates put the number of work at home businesses at over 43 million.
The HomeOwners Insurance Policy and Work at Home Business
All to often though, most people don’t think about adding insurance coverage when they decide to work from home. Homeowners insurance policies do have some coverages but they are very limited. If you have a work at home business or telecommute, most homeowners insurance policies will only cover:
•$2,500 for home office equipment and inventory in your home
•$250 for home office equipment and inventory away from home
Home Owners Insurance and Work at Home Liability Coverages
In addition, it is important to note that there is absolutely no liability coverages offered for your work at home business, so if someone is injured while doing business with you in your home, you may have to pay the bill yourself!
Insurance Options for Your Work at Home Business or Telecommute Job
Like most work at home business people and telecommuters, you probably feel you need more insurance coverage. You do have some options. There are two endorsements you can add to your current homeowners insurance policy. The business pursuits endorsement would help you if you do not own the work at home business but sometimes do business from home. If you own the work at home business, you may want to consider the permitted incidental occupancies endorsement which will give you broader property coverages for your business and add much needed liability coverage.
There are also separate work at home business owners insurance policies you can buy in addition to your homeowners insurance or if you currently do not carry a home owners policy. Ask your agent about a BOP (business owners package) if you are interested in a separate insurance policy or your agent should be able to put together a special policy specifically for your work at home business and telecommute needs.