Do I Need Insurance for My Oswego or Morris (IL) Home-Based Business?
The number of Americans working from home has been increasing for years. The percentage will likely continue to rise as we keep adjusting to the era of COVID-19.
Working from home in Oswego or Morris offers advantages such as comfort, convenience and flexibility, as well as time and money saved without a commute. At the same time, you may still have business-related concerns such as coverage for work-related injury, property damage or even general liability.
Your homeowners policy covers personal property and activities. If something is “for business use,” the coverage will typically be excluded from your personal home policy as written in your policy. For example, if something happens to your work laptop computer in your home office, you often cannot recover expenses.
With this in mind, if you are an employer or an independent contractor with a home office in Oswego or Morris, you should know how much small business insurance to carry.
Home-Based Business Insurance Oswego, Morris: Worker’s Comp
In the eyes of the law and the IRS, home-based employers and contractors are both considered self-employed business owners. They must pay their own taxes and cover their own liabilities, as well as workers compensation insurance for themselves and their employees.
If you are self-employed and you or a staff member is injured at your home office or while performing work in the field, you will not have a human resources department to assist with compensated leave. Therefore, it is important to work with an independent insurance agency like Hometowne Insurance. The same applies to missing work for an extended time because of an illness.
By carrying small business workers compensation insurance, you help cover medical costs, legal fees and lost wages due to injury or illness.
Home-Based Business Insurance Oswego, Morris: General Liability
If you have a customer or a non-employee visit your home office and that person is injured from a slip or a fall, your homeowners insurance will not cover related legal and medical expenses. You could also be held liable if another person’s property is damaged by your home-based business.
Some homeowners policies may offer add-on endorsements to help cover business liabilities, but the defined exposures to risk are usually limited and dependent on the foot traffic in your home. If your insurer does not offer such endorsements to your policy, you can consider a separate policy for commercial general liability insurance.
General liability insurance may also cover you in a case of libel, slander or infringement of intellectual property.
Home-Based Business Insurance Oswego, Morris: Business Property
Most homeowners policies will not cover property related to a home business, including the office itself. This property might also include items such as a computer, audio/video equipment, special machinery or products you sell. Should it be lost, stolen or damaged, it would not be insured.
Commercial policies are available to protect these assets. You might consider a business owner’s policy (BOP) as well. A BOP combines general liability with coverage for your company property. A BOP will protect any property needed to run your business as well as cover you for things such as costs or lost income from business interruption.
Home-Based Business Insurance Oswego, Morris: Other Types of Coverage
Beyond the insurance for small business that we’ve discussed, coverage you might consider for your home office could include:
- commercial auto – if you transport clients, business associates or business property, the vehicle you own or lease for that purpose often needs to be insured on a commercial policy.
- commercial umbrella – this gives you an extra layer of protection beyond your main policy’s maximum limits; the coverage can be particularly valuable in the event of a business liability lawsuit, which can often exceed a business’s actual value.
- errors and omissions – if your business provides professional advice or consultation, it could be held responsible for inadequate or incomplete information (errors) or services (omissions) that cause financial harm to another. An errors and omissions policy would cover that risk.
Find Out More About the Right Insurance for Your Home Office
Insurance for small businesses in Oswego and Morris (IL) will likely continue to evolve as more people work from home in the future. As an independent, full-service agency serving your community, Hometowne Insurance can further inform you about the right coverage for your specific home-based business. Connect with a specialist today!
Oswego: (630) 554-4040
Morris: (815) 942-1312
We are also a main source of home-based business insurance for nearby communities such as Plainfield, Naperville, Aurora, Montgomery, Batavia, Geneva and Yorkville.