For the millions of Americans who operate a full- or part-time business out of their homes, the question of whether to invest in work-at-home insurance (also sometimes called self-employed insurance) is of critical importance. And given the tight financial margins of many home-based businesses, finding insurance that offers protection without breaking the bank can be just as stressful as worrying about the many risks a business faces.
With that in mind, here’s an overview of how work-at-home insurance functions, what exposures it protects your business from, and how to find a policy that meets your needs and your budget.
What is Self-Employed Insurance?
Self-employed insurance is one name for the kind of business liability insurance that protects owners of home-based businesses from the various risks that threaten the viability of their business ventures. These risks include…
- Storms that damage business property (such as computers, printers, or inventory).
- Theft incidents that damage a home office or result in the loss of goods.
- Injuries that occur to clients or other third parties while they’re visiting your office for business purposes.
- Work you do that causes physical harm or financial loss to a client.
The potential losses that stem from damaged or stolen property are obvious: without your gear, it’s hard to perform your work. Losses from injuries or damage to clients can affect your business less directly. An unhappy client (or supplier or other third party) who feels that you’re responsible for their injury or financial loss could easily sue you for damages.
Even if their suit is frivolous, you’ll have to pay a lawyer to present your defense in court, along with any relevant court fees. The various types of work-at-home insurance offer coverage for these costs, as well as the cost of any judgment or settlement for which your business is ultimately found liable.
How Can I Save Money on Work-at-Home Insurance?
The good news is that insurance companies understand that small and home-based businesses have a unique set of coverage needs. To accommodate these needs, they created what’s called a Business Owner’s Policy, or BOP. The BOP combines General Liability Insurance and Property Insurance into a single package for a discounted premium.
This means that you can secure significant protection for your business (and peace of mind for yourself) for a reasonable premium.
Do I Really Need a Self-Employed Insurance policy?
While purchasing business insurance doesn’t make sense for every self-employed individual, it’s important to understand that your Homeowner’s Insurance policy most likely does not protect the risks associated with your home-based business. (See an infographic on the limits of Homeowner's Insurance.) If you choose not to carry a self-employed insurance policy, you might want to consider starting a dedicated savings account you can dip into in the event of crises.
Still have questions about work-at-home insurance? Contact one of our insureon agents today and receive direct answers about your home-based business needs!