Remote working is when you and/or your employees are allowed to work from wherever they please, instead of clocking in and out of a traditional office.
As entrepreneurs are running their businesses in the comfort of favorite sweatpants and fuzzy slippers, they might not be aware of what’s at stake if anything unfortunate were to happen to their business’ assets.
If you’re a work-from-home boss, your current homeowner’s insurance may not cover business-related property.
Don’t worry, by the end of this article, you should be able to find the right insurance policy from policy comparison sites like PolicyScout!
Homeowner’s Policy Endorsement
Depending on the nature and size of the business, you could do away with adding a rider to your current homeowner’s insurance policy. Your homeowner’s policy would typically cover up to $2500 for business property such as your work computer and printer.
This means that if a flood destroys $3500 worth of business equipment, you’ll have to fork out $1000 out of pocket to cover the damages, before considering any deductibles.
With an endorsement, some insurers allow you to provide coverage of up to $10,000.
If you have clients or visitors coming over for business-related issues, opt for a homeowner’s liability endorsement. This ensures that you’re covered if, say, the delivery man or client trips over a cable and sue you on the premises of failing to keep your property safe.
On average, an endorsement would only cost $14-20 a year.
In-Home Business Policy
This policy is more comprehensive. For $200-500 per year, this policy can cover up to $10,000 in losses. This policy also covers three of your employees or family member volunteers in case of theft or injury.
As for liability coverage, you can choose from a range of $300,000-1,000,000.
Depending on the policy you opt for, you may have coverage for any of your inventory that is kept in different structures on your property.
Example: You sell kitchen appliances and keep your stock in a shed that was ravaged by a fire.
Some in-home policies also provide reimbursements if you have to temporarily halt your business operations in case your business property is damaged by a fire or other covered causes. This way, you have replaced income.
You probably weren’t expecting this. But if you get sick or succumb to an injury while you’re not at work, chances are your business policy isn’t going to cover you. You will need health insurance for this.
Remember, almost 140 million Americans have medical debt. You don’t want to siphon your business profits or sell assets to pay off your personal medical bills just because you’ve overlooked this key policy!
Your car insurance policy may not cover any damages when you’re doing work-related driving, such as going to your client’s office for a meeting. If you caused an accident and get sued, your personal car insurance may not have your back. Make it a point to contact your insurer regarding this issue.