In the advent of technology, more and more people than ever before are learning what it means to work from home. In addition to the struggles of keeping a schedule, staying productive and learning to eschew distractions, work-from-home employees also need to consider how their home insurance will cover residents and their property should a covered event occur. Learn more about what you can expect to be reimbursed for.
If you're employed full-time at a company, then it's likely your employer's insurance will cover you. Your boss probably hasn't discussed the company's workers' compensation or property damage policy, but you can bring up the issue with them to understand more about what they're liable for and when you're not covered. Commercial insurance can be one of the trickier types of policies and there aren't always cut-and-dry answers, but starting a conversation can help.
If you're not a covered employee (e.g., part-time, contractor, etc.) or you run your own business, you likely won't be covered for certain events unless you tell your insurance carrier the nature of your work. For example, let's say a client comes to your home to discuss their options with you. While there, they trip over one of your child's toys that was left out in the middle of the hallway. Your liability coverage may deny this request if you had adjusted your policy to include commercial home visits.
Equipment and Data
Some people see their cottage industry bloom from a once-in-a-while hobby into a full-time supernova. But somewhere along the way, they forget to update their home insurance about all the commercial equipment they're buying. If it's damaged or stolen, it very well may not be covered under your general policy. The same goes for cyber data. If you're handling sensitive client information, such as their credit card information, and your network is breached, you may be on the hook for potential recovery damages.
No matter what kind of work you're doing from home, it's important to stay knowledgeable about what will happen if someone is injured or commercial property is damaged. Home insurance may cover several things, but in some cases, you may need to get separate business insurance to make sure you have all the protection you need.
Also Read: Will Home Insurance Cover a Cracked Driveway?