As a result of the COVID-19 pandemic, many people are currently telecommuting and may need to continue to do so for the foreseeable future. If you’re in this situation, it’s important to review the details of your home insurance policy. Here’s why.
Exclusions for Business Use
A standard home insurance policy doesn’t cover a home-based business. This category tends to be broadly defined and may encompass workers doing a job for their employer at home.
As a result, people who work from home ordinarily need to buy home-based business insurance. This covers them in the event that work equipment or inventory at their home is damaged or stolen. Additionally, it protects them against a third-party liability claim in the event that a client gets injures on their property.
If you don’t have home-based business insurance and are currently working from home, you may not be covered. Or you may be only partly covered.
Some insurance companies have eased up on their rules for home insurance due the current circumstances. For example, under certain policies, telecommuting is considered “incidental business use” and the holder is covered for equipment loss and third-party liability. However, every insurer is different, so check with your provider to find out what protections you currently have and lack.
Note that if the work equipment you’re using at home is owned by your employer and covered by their commercial insurance policy, then you don’t need to have it covered under your own policy. However, the employer should verify that their own insurance policy covers equipment when it has been moved from the workplace to an employee’s home.
Saving on Insurance during the COVID-19 Pandemic
Insurers understand that many people are facing financial hardships due to the pandemic. As a result, they’re offering several solutions to those trying to limit their expenses. This includes:
- Offering insurance discounts
- Waiving interest fees for late payments
- Deferring monthly payments to a later date
- Advising policyholders on reducing their premiums
Speak with your insurance broker to explore your options for reducing your expenses during the COVID-19 pandemic.