Regarding insurance for a home office
Monday, May 18, 2009 5:07
The house is fairly common these days most people choose to work from home or telecommuting or starting their own business.
Many things must be considered when setting up an office at home, not least the way to go for it. If you work at home telecommuting as part of an agreement with your employer, the risk is borne wholly or partly from them. It is necessary to clarify who is responsible for what, before entering the agreement.
If starting a business from home, you are obliged to ensure that insurance coverage is adequate. Some types of insurance for home-based entrepreneur to take into account are:
• The office
• Inventory (if the stock kept on site):
• Public Liability Convention
• Professional Indemnity
• Workers’ Compensation
• Personal Accident / Income
Many small and micro business operators must feel little, if any, insurance. Imagine …
Your home is struck by lightning during a violent storm, and all your electrical equipment is “fried.” Your Home Contents policies cover the replacement of equipment damaged by lightning, but does not include equipment used to operate a business. Some companies offer limited coverage for office at home … not.
Did you ever hear you to your office? If a customer travels on one of your children’s toys and injuries do not expect to be compensated by the public liability section of its family policy. Any liability arising from your activities will be borne by you.
Think about this for a minute. Medical expenses, loss of income because of incapacity, not to mention the legal costs if the case goes to court proceedings that may be assigned. Without insurance for your business, an application is all that has been economic ruin.
If you held at the headquarters inventory, remember that not covered by your family policy. A policy to ensure that your status will be required.
Perhaps it is not managing the stock. The product may be your experience and talent as a business consultant or financial adviser. What happens if your advice turns out to be wrong? An investment adviser whose clients lost a lot of money because of his advice may also cite him for losses. Without professional indemnity insurance, another small company folds.
Another question to be asked is: What are the consequences of losing my home-based income from businesses is that my current lifestyle? If the answer is anywhere from “almost” a “disastrous”, a form of income and protection of personal accident insurance is recommended.
Then there is the Workers’ Compensation. “Workers’ Compensation?” I ask incredulously. “But I can not take any!”
Consider this …
Are you a graphic designer and very, very busy. Demand for services has grown so much that sometimes some of the subcontracts.
On one particular occasion, you may contact a designer with whom you have worked before. He will meet with your favorite coffee “nest” and it goes beyond the specific work with him. The meeting ends well and I look forward to receiving its share of the project on time. He can not wait to start (or to receive the check).
On the way home from his meeting with you, the designer is involved in a car accident and seriously injured. He will not be able to work at least eight weeks and has no personal accident insurance.
He was the only vehicle involved so there is no recourse. His only alternative to keep your life in a certain order is to require the Workers’ Compensation … from you. Since the accident on the way home from his meeting with you – a person who has offered to pay a service – it would be difficult to successfully challenge the request.
Whatever type of activity is managed from home, it is imperative that the correct type of insurance and coverage is achieved. As is illustrated with examples, it is only an accident that gave rise to an issue that can destroy not only a business but also life.
And not only is the industry that is suffering. Victims who are themselves able to earn a living, not their fault, which also suffers – as do their families. Even if a sentence is awarded in favor of the victim, now bankrupt home-based business operators concerned do not have the means to pay.
Bottom line? Talk to an insurance broker today!
