Working For Yourself, From Home, What Insurance Do You Need?

Many Americans are exchanging the traditional working environment of an in-person office for the freedom of self-employment, perhaps working from home or remotely. In fact, according to sources, there are some 15 million self-employed professionals right now that are part of the American workforce.

Even more are expected to join them. Incidentally, this was a trend that was already growing before the global pandemic, but the numbers during and throughout COVID have continued on an upward trajectory. If you can relate and work for yourself from home, you need to know what type of insurance you need. This is important to note because although your homeowner’s insurance policy will protect your home, it doesn’t necessarily extend to the business that you house within its walls. Read on to learn more about what you need to know about homeowner's insurance as a self-employed professional:

What Home Insurance Covers

If you are moving towards a self-employed at-home working environment, there is an issue of insurance protection that you might not have considered. While there is no “work from home insurance'' presently, homeowners policies will typically cover most personal property, extending to business equipment. However, that coverage only reaches a certain extent. Therefore, if you are operating a small side hustle, there is a chance that your homeowner’s policy’s standard coverage already provides you with enough protection to replace most of the personal property in your home. This being said, if you are running a fully operational at-home business, you might want to consider adding an endorsement to your homeowner’s policy to extend the basic coverage. You can also instead opt for a standalone in-home business policy that might better fit your needs. Therefore, it's vital that you take note of what your current policy covers and determine if you need more coverage than you have. 

Other Insurance You Might Need

In addition to specific business insurance to cover possessions, you might also need to consider the following additional types of insurance that might be beneficial for you as a self-employed professional: 

1. Health Insurance

Obviously, whether you work from home or in an office, health insurance is a must in today’s society where even minor medical procedures are priced astronomically. It’s a good idea to sit down with an agent who can help you understand what options you have that fit your budget and coverage needs. Thankfully, there are some tax-deductible health insurance plans that you can consider as a self-employed individual. This is important to note, because many people associate health insurance coverage with a job, or being provided by an employer, but that isn't the case when you are self-employed. As a self-employed individual, you need to ensure that you have health insurance. Doing without this coverage can lead you to financial ruin should you have an accident or serious illness. 

2. Business Insurance

Another important measure of protection to consider is business insurance that covers the following aspects:

  • General Liability: This coverage can be bought on its own as a stand-alone policy or be part of a business owner’s policy. You can also combine several types of insurance coverage, like general liability, into one package at a reduced rate utilizing a business owner's policies or BOP. Your eligibility for BOP will depend on your business type. 

  • Workers Comp: If you or anyone you employ is injured at work, this will typically cover the cost of lost wages and/or various medical expenses. 

  • Professional Liability: This coverage, which is more commonly known as errors and omissions insurance, provides coverage if you or a client is harmed by a service you provide or as a result of advice you give.

3. Disability Insurance

If you have an accident or health condition that prevents you from working, disability insurance kicks in. You will be able to select either long or short-term disability policies for your business. This is a type of coverage that is often part of employment coverage. Therefore, it's important to consider this if you have moved outside the office setting and are on your own. Disability insurance is important because if you become unable to complete your job due to illness or injury, this coverage can keep you afloat, providing much-needed income that you are unable to make. Asking yourself how long you could do without your income is a good way to determine whether or not you need this type of coverage. In most cases, individuals can't go very long with a loss in their income stream.

Bottom Line: Self-Employment Doesn’t Come Without Risks

Being self-employed is a bit of a gamble. While some of that risk cannot be mitigated, one way to protect yourself from life’s uncertainties as a self-employed business professional is through the types of insurance outlined above. We understand that figuring out all the details involved in such coverage can get a little overwhelming. Our suggestion? Contact our team today to compare rates and get a better grasp on the details, so you can select the best coverage for your needs.


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