Whether it's due to the competitive job market or the rise of entrepreneurial culture, many Canadians are turning to freelancing as an alternative to the conventional salaried job.
Even if you're only freelancing part-time or on the side, when you start using your home as an office you introduce potential new risks that require coverage outside of a standard home insurance policy. Luckily for most freelancers who operate independently, home-based business insurance is available as an add-on to your existing home or tenant's insurance policy.
What does home-based business insurance cover?
A quick chat with your property insurer can ensure that your home-based business insurance provides you with the coverage you need. Plans typically cover four main exposures, but because it's an add-on to your existing property insurance policy the coverage may come with limits:
- Office equipment
- Business inventory both on and off premise
- Business interruption insurance, which protects you in the event an insured loss affects your home and thus your work space
Liability coverage is often one of the most important protections. If a client, customer or even a delivery person visits your home on matters related to your work and gets injured, a lawsuit could cost you a lot of money and even your business.
And, while home insurance would typically cover your personal belongings, as soon as they're used for business purposes they are considered business property. Notifying your property insurer of your home-based business will ensure your equipment is protected whether you're at a client's office, a coffee shop, or sitting on the couch.