If you’re one of the 3.9 million Americans who works from home, you’re probably reviewing your tax returns and a drawer full of receipts to make sure you didn’t miss a single deduction. You should also be checking your home and auto insurance policies to make sure they cover business-related incidents. Personal policies, such as homeowners or personal auto, don’t cover most business activities. Commercial policies are designed for business exposures.
What happens if you are conducting business out of your home or while driving your personal vehicle? “There’s a possibility your insurance company might deny your claim,” said Yolanda Hernandez, an insurance agent with Mennonite Insurance Services.
Insurance adjusters might deny your claim if the damage or injury caused was the result of a business-related use at your home. The typical homeowners policy covers only personal, or day-to-day, uses of your property. For instance, your claim might be denied if you were cooking for a home-based catering business and someone gets sick from eating your food.
Hernandez said the same rules apply to the personal versus business use of your automobiles as well. That’s why it’s important to read over your insurance policy before you start working for a ride-share service like Uber or a grocery delivery service like Instacart.
It would be good to check with these companies to see if they offer their independent contractors a special insurance policy that covers you while you are working for them. These policies may be an extra expense but provide protection you don’t otherwise have.
Call Mennonite Insurance today at 559-638-2327 or e-mail if you need help finding an insurance policy that covers business-related activities.