Work from Home Liability: Is Homeowners Insurance Enough?
The COVID-19 pandemic has forced many workers to change where they do their work. So, many of us, who use to work at an office location, now find ourselves working remotely. In most cases that means from the kitchen table, a spare bedroom, or home office. This creates a Work From Home Liability. So, many workers are now wondering if working from home is covered by their home owners insurance. The answer is it depends on the circumstances. But home insurance usually wont cover many general work-from-home liabilities. You will only be protected fully if you specifically update your home insurance to include limited business coverage.
Additional Liabilities of Working from Home
So, the shift to a stay-at-home work environment carries with it a necessary shift in some business-related insurance concerns. Some of these coverages, that are now tied to your home and personal liability often include the following:
- Business equipment replacement coverage
- Slip and Fall coverage
- Loss of use coverage
- Business overhead expense
- Inventory and or supplies
- Co-workers / employees
- EPL – employment related practices liability
- Real Property Coverage
- Cyber liability and data breach
Covering Work from Home Liabilities
A Business Owner’s Policy (BOP) is a great way to cover all these liabilities. If you don’t have a BOP, you should at least acquire General Liability coverage. Because both will augment your homeowner’s insurance to help cover work from home liability.
However, if pre-approved by your homeowner’s insurance company, some limited coverages listed above may apply. As a side note, some companies don’t allow work from home coverage as a part of their insurance plans. The extra risks associated with such activities may force your homeowner’s insurance provider to cancel your policy. So, if you plan to continue working from home beyond the COVID-19 pandemic era, research your insurance providers position. Make sure you are aware of any exceptions or restrictions on your policy.
Not everyone working from home is doing so because of COVID-19 restrictions. Instead, some maintain an active office at their home as part of their normal business structure. If you fall in this category, it’s wise to seek advice from your insurance agent. Because it’s important to make sure correct and adequate insurance is in place. You never want to find yourself in the situation of a denied claim.
Do you have questions about the liabilities related to your work-at-home status or your permanent home office? Please don’t hesitate to call Chris Wilson at (619) 980-7263. He can explain these types of liabilities and recommend how you can best protect your home and financial liability.
