Does my homeowner’s policy cover me if I’m a remote employee?

Does home insurance cover remote work
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Due to the COVID-19 pandemic, there are so many people working from home

As a result of the global pandemic, the American workforce has had to reimagine how corporate work gets done, as well as where the work takes place. A study conducted by Pew Research states that a majority of those who say their job can be done from home say they’d like to telework all or most of the time post-pandemic as well. This article will explain the necessary information to understand the role your homeowner’s policy will play while working remotely. Even if your home is your workspace, our team of agents are standing by for your home insurance needs in Ohio, IndianaMaryland, or West Virginia today.  

Are you a remote employee of a company?

To fully comprehend the insurance ramifications, one must first understand the distinctions between working remotely, telecommuting and working from home.

  • Work from home: There is a company office where you work most of the time, but on other days you work from home. Many workers during the pandemic are working from home full-time prior to their company’s return to the office.
  • Remote work: You work full-time from any location because you do not have a permanent office in a company location.
  • Telecommuting: You spend much of your time working outside of the workplace. This is a hybrid between work from home and remote work since it relates to the majority of work being performed outside of the office in any location with intermittent in-office work.

It’s worth noting that, given the rise in working from home as a result of the pandemic, many jobs might well continue to be work from home, implying that they’d technically move to remote worker status.

Do you see customers or clients at your home?

Your homeowner’s liability policy can not protect you entirely — or may not cover you at all — if a client or customer is injured in your home or on your property while visiting you on a work-related matter. In most cases, client visits at your home would necessitate the use of a separate business insurance policy.

Do you use your own equipment while being a remote employee?

If you use your own equipment for business purposes, there is a possibility that you may not be covered if you have a claim. For example, if your pastry-baking hobby transforms into a business and your oven is damaged in a fire, is it a business equipment loss, or a homeowners insurance policy issue? This is an illustration of what you should discuss with your agent before you establish your business. While some homeowner’s policies cover some business equipment, such as computers, there are generally restrictions limited by value or by purpose. You may require separate business protection.

Do your clients require you to have business insurance?

A few customers may require evidence of a business insurance policy, and others may request to be added to the policy, depending on the nature of your business. 

For home-based business owners, there are a variety of insurance options for you to choose from. Your best choice is to speak with one of our agents about your business and see what options are available for you.

Remote employees should understand what their existing homeowner’s policy covers

Many home-based business owners make the mistake of thinking that their homeowner’s insurance would protect them in the event of a loss. In fact, many homeowners insurance plans have limitations on the types of risks that could impact a home-based company. 

Other business-related claims may not be protected at all, and certain homeowners’ policies explicitly state that running a home-based business is a breach of the policies’ terms. The first and most critical move you should take is to figure out what your current homeowner’s insurance policy covers. You can then take measures to decide what additional coverage you may need once you have that information. As always, our capable team at Malhotra & Assoc. Insurance can provide more insight. Protect your business and ensure that you have a stress-free remote work experience by learning more about coverage in Ohio, IndianaMaryland, or West Virginia today.

*Our blog articles are intended for general informational purposes. Please contact one of our Licensed Insurance Agents if you have specific questions about your coverage.

About the Author: Alekha is an expert in the insurance space and has been with the Malhotra & Assoc. Insurance team since its inception. Since then, Alekha has worked to provide expertly written and researched content for the Maholtra & Assoc Insurance agency.
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