Working from home can be extremely rewarding for many businesses and industries like technology, consulting, mobile services (glass replacement, auto detail, construction), real estate, and many more… but it has its distractions. Here are some things we suggest when working out of your home:
1. Don’t use your workspace for non-business activities.
Keep your work area free of distractions. It may sound nice to be able to watch your favorite reality show while you catch up on paperwork, but you run the risk of fazing away from your important tasks. If children, family members or pets are coming in and out of your work area, it’s even harder to get work done. Also, don’t forget that if you claim a tax deduction of your home office, the IRS requires a home office to be used exclusively and regularly as your principal place of business or as a meeting place for clients and customers. Contact the IRS or a licensed tax professional for more information.
2. Don’t let others to use your work computers and mobile devices for recreational purposes.
If you keep your financial and client information on an electronic device in your home work area, make sure that other family members follow the rules that device is for business only. Failing to do this could lead to possible data and privacy breaches, accidental deletion of information or malware and viruses infecting your device. Although it has its own drawbacks, you also may consider employing an encryption software to protect your business records.
3. Don’t allow pets in your work area.
Not much to comment on this statement…
4. Get adequate insurance coverage to protect your home office.
Your homeowners (HO) insurance provides coverage for your residence. Sometimes it has an endorsement called “Business pursuits” . This coverage is inexpensive but in the same time very restrictive in terms of limits and protection. What you need is coverage for 3rd party liability and personal injury arising out of your business operations. For example, if you are meeting with a client at your home office and he fell on the doorstep or stairwell and broke his arm, there is a chance your HO insurance won’t cover such claim. The same is true for your business property. If you keep samples, tools, equipment or stock, or even built a little warehouse in your garage – your HO insurance won’t cover claims related to loss of such property.
Finally, if you have employees, your HO insurance won’t cover this exposure either. Normally HO policy provides coverage for domestic help: babysitter, janitorial, gardener, you got the point. Workers Compensation Insurance is what you want to get in place to cover your employees.
Paperless Insurance Services offers business insurance for any size of business. We can cover your liability, home office and employees.