As the working landscape continues to change, more and more people deign to work from home or work on an independent basis. It can give a lot of people a sense of purpose and individuality as opposed to working for a large company. However, self employed individuals face a lot of risks that many business owners also face.
Many of these risks can be covered by commercial insurance. Commercial insurance, also known as business insurance, covers different risks a business owner may face day to day.
Will Home Insurance Cover My At-Home Business?
Contrary to popular belief, home insurance may not provide compensation for your business materials and equipment if they are lost or damaged due to a disaster. This is because home insurance is designed to cover your physical dwelling and personal belongings. Materials you use for work purposes should be covered under a separate business insurance policy. The most common of these is commercial property insurance.
Commercial property insurance covers the physical assets of your business, including a possible physical location (that is not your home). It compensates you for losses and damages caused by fire, wind, hail, lightning, smoke, explosions, theft, vandalism and more. Work equipment can also be covered under this, but businesses with specialized equipment may also want equipment insurance or equipment breakdown coverage. Equipment breakdown coverage covers equipment your business uses in case they suddenly break down, such as a fridge or freezer in your restaurant breaking down unexpectedly.
Do Self Employed Individuals Need Workers Compensation?
If you are the only employee, you do not generally need workers compensation insurance. If you employ anyone else, however, you may want to consider workers compensation. This insurance covers injuries employees may suffer on the job. If your employees run errands or do any sort of physical labor for your business, you will want a way for them to pay the necessary medical bills for their injuries. Workers compensation can also protect you from lawsuits concerning employee injuries.
Liability and Self Employment
No matter where you work, self-employment means that liability for accidents and product accidents will fall directly on your shoulders. General liability insurance can help with bodily injury, property damage and personal and advertising injury that may occur during the course of your work to clients and other third parties. You may also want product liability, which covers injury, property damage and financial loss one of your products may cause a customer.
Be sure to speak with an insurance agent about your coverage needs before working for home or striking out independently so that you can protect yourself.