Homeowners Insurance Considerations for Remote Workers and Home Businesses

With the rise of remote work and home-based businesses, many individuals are spending more time working from their residences. This shift brings new challenges and considerations, particularly when it comes to homeowners insurance.

Insurance Considerations People Who Work at Home

The following are key insurance considerations for remote workers and home business owners:

• Coverage for business equipment—Standard homeowners insurance typically financially covers personal property but may offer limited coverage for business equipment. Remote workers should verify if their policy includes coverage for essential work tools like computers and printers. Home-based business owners might need additional coverage to protect more valuable equipment.
• Liability coverage—Homeowners insurance generally does not cover business-related liability. If a client or delivery person is injured on your property, your standard policy might not provide coverage. Home-based business owners should consider a business owners policy (BOP) or other forms of liability coverage.
• Workers’ compensation insurance—Remote workers employed by a company are usually covered by their employer’s workers’ compensation insurance, even when working from home. However, self-employed individuals or home-based business owners need to verify they have appropriate coverage for work-related injuries.
• Business interruption insurance—Business interruption insurance can be vital for home businesses. It can help cover lost income and operating expenses if your home office becomes uninhabitable due to a covered event, such as a fire or flood. This type of insurance can help maintain financial stability during unforeseen disruptions.
• Additional endorsements—Consider adding endorsements to your homeowners policy to enhance coverage. Options like the permitted incidental occupancies endorsement can offer additional protection for home offices. These endorsements are particularly useful for freelancers and professionals who occasionally work from home.
• Regular policy reviews—As your business grows, your insurance needs may change. Regularly review and update your policy to confirm that it aligns with your current business activities and assets. Consulting with an insurance provider can help identify gaps in coverage and recommend suitable adjustments.

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For homeowners and business insurance guidance near you, contact Willis Insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.