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Insurance for Work-from-Home Employees: Here’s What the Experts Have to Say

Jun 22, 2022

Riverbend Insurance

Insurance for Work-from-Home Employees: Here’s What the Experts Have to Say

Come COVID-19, many companies switched to work-from-home, a trend that’s likely to stay despite the surge in vaccinations and a resulting decline in the number of infected. While desired by many, working from home is not without its share of risks, which is why adequate insurance coverage must be in place to protect the employees even while they are working off the office premises.

Read on to learn what they had to say:

Do work-from-home (WFH) employees need insurance?

 Carter Seuthe, CEO of Credit Summit, believes that employees who work from   home absolutely need insurance.

They need health insurance and other benefits, but also additional coverage as they are working for a business while under their own rooftops. If anything were to happen to their work environment, they should not have to pay out of pocket to cover all the damage.

Linda Chavez, Founder & CEO of Seniors Life Insurance Finder, shares, “Working from your home means you have a lot more risk than when you work in an office setting.

For example:

  • You are more likely to have equipment stolen
  • There is a greater chance of accidents happening in your home
  • You may be held liable for any injuries that happen to people who come to your home for business purposes

For these reasons, it is important to make sure that you have the right insurance coverage in place.

Randy VanderVaate, CEO and founder of Funeral Funds of America, said that work-from-home employees should check with their company to see if they are considered full-time employees and whether or not they are eligible for benefits like health insurance. 

If they are not regarded as full-time employees, they will have to purchase their own health insurance policy.

Does home insurance give any coverage to WFH employees?

Harriet Chan, co-founder and marketing director at CocoFinder, shared that home insurance does not give any coverage to work-from-home employees. It typically covers the structure of the home and personal belongings, but it does not cover business activities. 

Work from home employees should purchase their own business insurance to protect themselves and their businesses.

Randy also shared insights on home insurance saying home insurance policies do provide coverage to work-from-home employees. However, the level of coverage may vary depending on the specific benefit plan.

Generally speaking, most standard home insurance policies offer some form of coverage for business-related losses that occur within the home. This includes losses that occur as a result of a burglary or theft and losses that arise due to fire or other types of damage. So in most cases, work-from-home employees would be covered if their computer equipment or other office belongings were damaged or stolen.

 Christopher Sioco, COO (Chief Operations Officer) at Parachor Consulting,   responds, ”Home insurance covers the person’s personal property. However, when we talk about a remote worker, they won’t get a specific insurance. Maximum they can do is cover their business workspace under their home property and get it insured.

What are the insurance options for WFH employees?

Stella Cooper, CEO at PaydayLoansUK, shared that if the organization's employees are all remote workers, the business will require general liability coverage at the very least. 

In addition, even a BOP policy (business owner's policy) has specific exclusions, and other coverage might be required, such as worker's compensation.

Josh Snead, CEO of Rainwalk Pet Insurance, said that workers' comp coverage, which is required by almost every state, includes coverage for remote workers. 

Workers' comp covers medical bills, lost wages, and disability benefits for injuries that arise out of and in the course of employment. This means any injury that happens while an employee is doing work-related activities should be covered-- even when those activities happen at home.

Amber Benka, an insurance agent with California Commercial Insurance, shares, “Owning your own business means a lot more equipment than your average employee. It may be in your best interest to think about adding an endorsement that increases your coverage limits on your work equipment and assets. 

Depending on your state regulations, you could add additional coverage for liability and work equipment ranging from $2,500 to 10,000.” 

 Shawn Laib, an insurance expert with ExpertInsuranceReviews.com, responds, “Pay-per-mile insurance is a great option for people who work from home because they will be driving less. Their policy will reflect those driving habits and adjust the price.

Conclusion:

Whether you own a home-based business or are an employee working from home, having adequate insurance coverage will allow you to work with peace in mind, knowing that you are protected against uncertainties. Talk to our experts at Riverbend Insurance to get started on your customized policy today.