What Are the Two Types of Home Office Insurance?

Once considered a luxury for many people, 2020 has seen working from home become the new normal for millions of people across the globe.

As the COVID-19 pandemic took hold and social distancing became commonplace, many people were forced to begin working remotely, and there has been a sharp rise in the use of home offices.

With people discovering the many benefits of working from home, experts are predicting that remote working is going to become more common once the pandemic is over. A wide variety of businesses are able to be successfully operated from home, but ensuring you have the right level of cover is essential. Typically, most companies fall into one of two categories:

Sales Office

A homeowner's insurance policy does not usually offer policyholders much in the way of protection for their business property. Frequently, most policies will only provide coverage up to $2,500 for any personal property that is used for business and is kept at the registered address.

Equally, this coverage does not extend to any business property such as your inventory, product samples, or any items that you are holding before delivery. Typically, even optional coverage extras will still exclude any property that is related to a business conducted on your home premises, for example, a cosmetic sales rep who might hold makeup parties at their property. For ease, it is only natural that this sales rep would want to keep their inventory at their home, but a home office policy would not cover these items.

Some salespeople will be able to cover a limited amount of inventory through a Business Owners Policy (BOP). This type of policy is able to cover a wide range of areas, including buildings, personal property, loss of income, and any extra expense occurred to remain in business following accidents such as a fire. A BOP also provides premises liability and medical payments; however, if you have over $1,000 worth of stock off-premises in transit, then you will need to ensure you have additional coverage. This is also the same for any stock or goods that you keep away from home at another location.

Not everyone can qualify for a BOP, so if this is the case and a home business endorsement or additional separate policy is unable to provide the coverage you need, then your insurance agent will have to create a special commercial package for you. These agents will have vast experience in knowledge in creating bespoke policies that provide users with access to the right markets to ensure they have the appropriate coverage.

Of course, running a sales office from home is not just about protecting products. Businesses will also need to offer workers compensation coverage for any full-time and part-time employees. For those companies using corporately owned vehicles, delivering anything, or are using a vehicle larger than a car or small pickup might also need a commercial auto policy.

Professional Offices

The other type of insurance coverage is for those businesses operating professional outfits such as doctors, attorneys, or architects. Regardless of whether their home office is their only premises or is a satellite office, it is essential that they work with an insurance agent to ensure they receive the coverage they require.

A BOP is often a suitable level of coverage for professional offices, offering protection for buildings, personal property, loss of income, and any expenses occurred following an accident. Any professional office should also consult with their insurance agent to ensure they are also covered for professional liability as well as errors and omissions coverage.

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