Business Insurance for the Homeworker

April 16, 2012

Working from home is something that many people are interested in. Since the internet is now so prevalent it has never been easier to find work at home jobs. Not having to commute in rush-hour traffic is something that is very attractive to many people. Being able to work on your own terms and setting your own work hours is a dream job for many. There are a great variety of jobs and careers that can now be enjoyed from home.

People are now running internet businesses or working as online virtual assistants. The freedom of working from home and setting your own hours is a dream come true for many people. When you are an independent worker you will have to pay your own taxes and keep strict records to avoid any problems when tax time comes around. Some people incorporate as a business to save on taxes, since it is possible to write off a good portion of expenses that are incurred through doing business at home.

The question of insurance often comes up for those who work from home. Homeworkers wonder if it is necessary to have business insurance for the home office. This depends largely on what type of home office you have and the kind of equipment that it holds. The most important items in a home office are going to be the ones that the worker uses on a daily basis to conduct business. These items will more than likely include a computer, printer, office furniture and other items that are required to run the business efficiently. If there is inventory in the home this will definitely require business insurance.

Most people already have home insurance so whether you need extra insurance for the workspace at home depends on several factors. If the home office consists basically of a desk and computer in the bedroom of the home it is not likely you will need extra insurance if these items are already included in the home owner’s insurance policy. If, on the other hand, the business office is located in a separate space such as the garage, there may need to be extra coverage. Another point to take into consideration is if you have incorporated your business as a separate entity operating out of your home office.

It this is the case, insurance should be taken out for this business separately from the home insurance policy. If you operate out of your home or garage and have occasional customers visiting the premises, it is highly advisable to take out liability insurance in case anyone gets injured while on the premises. Since you are conducting business from home and customers are visiting to buy products or services it cannot be considered a casual home visit. Not being covered for liability can prove a costly mistake that can drain the finances very quickly if held liable for the injury.