Are you covered? Working naked may be the appeal of telecommuting but you certainly don't want to expose yourself to any risks. Working from home may not be as safe as you think. You are faced with situations you might not have contemplated from your cubicle.
Having a car arrive on your front lawn, power outages and or weather situations are just a few factors that make you aware of the potential risks.
Don't Forget Insurance
Many telecommuters are aware that they require a job suited to telecommuting, appropriate equipment and characteristics in order to succeed. Something that many do not realize or even consider is that they must be aware of insurance concerns and risks. If you are a homeowner, you are likely to have insurance. Some apartment dwellers and condominium renters may not have insurance and you open yourself to great risk without any insurance.
Before you begin your telecommuting arrangement, make sure you take the time to get your insurance in order so that you aren't caught without coverage.
Understand what home insurance covers: Homeowners insurance provides protection for your home, personal property such as furniture, clothing, and appliances as well as for personal liability. It protects you from a variety of events, including fire, lightning, burglary, vandalism, storms, explosions, and more.
Business use of the home is excluded. If you are an employee who telecommutes you are not carrying on a business and that difference must be made clear when speaking with brokers.
Insurance Considerations:
If you are an employee - does the employer have a commercial policy that covers the equipment you have.
If the employer has provided you with the equipment, odds are they will have coverage on the equipment under a commercial policy.
If you are using your own equipment, you will have to talk with your insurance broker to see how you can be covered.
** Regulations will vary depending on the country that you reside. Please check with an insurance broker/agent.
The following applies only to Canadians.
I spoke with Joe Federico, Broker - Dodgson Schaufelberger Insurance Brokers, London ON:
He confirmed that if a company owns the equipment that the employee is using then the Commercial Lines policy should be endorsed to extend coverage to the telecommuter's location or the mobile gear for mobile workers.
For an employee using their own equipment, it may be possible to get a rider that will cover their equipment. It is wise to talk with brokers that work with a large number of insurance companies to get the best results. This will be on a company by company basis on how your coverage will be handled.
If you are an independent contractor - You may be able to get an extension on your Homeowner's Policy. It is best to speak with your Broker and find the best solution. If you are a contractor using Company equipment, then it would be the same situation as an employee and the Company would have their policy endorsed to cover the equipment.
Specific United States Endorsements
HO 2471 endorsement (Business Pursuits):
Provides liability and medical payments coverage for the "business" listed on the endorsement. This is commonly used to pick up liability coverage for mobile workers who have a home office, or work from home. This endorsement specifically excludes a business owned by or financially controlled by the insured. It is intended for employees of other businesses only.
HO 0412 endorsement (Increased Limits on Business Property):
Used to increase the limitation on the standard HO-3 on business property on-premises. This endorsement does not exclude a business owned by the insured, but it DOES exclude: business property in storage, business property held as a sample or for sale or delivery after a sale, and business property pertaining to a business conducted on the residence premises. What is covered? Things such as office equipment that is used for a home office by someone that owns a business, or is an employee of a business that is not being run out of the home.
Anywhere above that refers to "employees of other businesses" would include telecommuters or mobile workers. This is just a basic introduction to some of the insurance concerns that affect telecommuters and mobile workers.
Just a reminder - I'm not a Broker so make you discuss these issues with your Broker in detail and be sure to get covered!
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