Insuring Your Home-Based Business in Washington

In the current workplace climate we’re experiencing, you’re probably wondering about your insurance coverage for your home office (or space you’ve designated as your home office).

 

For the sake of this blog, let’s split people into two groups:

1. Employees

2. Business owners, freelancers and independent contractors.

 

 

Employees

Let’s start with employees. If you are working from a home-office, you should discuss with your employer what your company’s policy covers. Employees working from home are probably utilizing a combination of company-owned equipment (laptop for example), and personal property (desk, chair, printer for example). With this in mind, you need to check with your employer regarding whether equipment you personally own, but are currently using to fulfill your work obligations are covered by your employer’s policy. If there are holes in the coverage of your employer’s plan, you should inquire as to whether your employer will reimburse you for getting additional home office coverage as a business-related expense. Remember, homeowners insurance has complicated exceptions for home office areas, so don’t assume something is covered by your existing policy without double checking.

The following are some examples of business-related situations not covered by your homeowners insurance:

• House burns down with employer’s property inside (laptop for example)
• Computer is at your dining room table and a juice box spills, damaging the equipment 
• Company car is parked at your home and is vandalized or stolen

 

 

Business owners, freelancers and independent contractors

For business owners, freelancers and independent contractors, the situation is obviously different as there is no employer to look to for policy questions; you are entirely on your own. Furthermore, as mentioned above, it is incorrect to assume your homeowners policy will automatically cover home office claims due to any number of exclusions and limitations in your policy. Fortunately, you have several options to choose from depending on your particular situation:

• If a client comes to your home and sustains bodily injury (trips over a step on the cement)
• Home burns down with your home office damaged

1. 1. 1. Get a business property endorsement added onto your homeowners’ insurance policy if all you’re in the market for is property insurance for your business.
      2. Get a Business-Owners-Policy, which combines commercial property insurance and general liability insurance into a single policy.
      3. Get a separate business insurance policy that covers only property, if you’re already covered for general liability through another policy.

 

No matter which policy you choose, one thing is clear: you need some form of coverage. If your workspace has changed in the last six months, there’s a strong chance gaps exist in your insurance that should be addressed.

For more information on keeping your business safe in the changing workplace dynamic, click here.

Should you have any questions regarding your current coverages, Basin Pacific Insurance is here for you. Contact us today at [email protected] and your agent will be in touch shortly.