Do You Need Insurance to Work from Home?
When you work from home, you get to make all the rules. That is, if you’re an independent contractor. Work-at-home employees are generally able to get insurance under their employers, but self-employed workers are completely responsible for providing their own insurance coverage. Although health insurance is optional, the self-employed need to consider numerous types of insurance providers before deciding if they can really afford to go without. The short answer for independent contractors is that they usually don’t need insurance to work from home, but failing to get coverage can lead to both financial and legal problems in the future.
Liability Insurance and the Work from Home World
If you provide certain types of services to your clients, you will probably need a liability insurance policy, whether you work out of your home or not. For instance, massage therapists need liability insurance in most areas just to be able to get licensed. This is to protect the general public as much as it is meant to provide a buffer for businesses. The purpose of liability insurance is to protect businesses in case of anything going awry, so if you normally meet with customers in your home, liability coverage is a must.
How Important is Disability Insurance?
Those who work from home are able to pick and choose when they want to work, who they want to work for, and decide the final terms of any project prior to accepting work. Self-employed workers are also able to book vacations at the times that are most convenient, take off days from work without needing approval and ultimately shape their worlds as they want them to be. On the other hand, nobody chooses when they become accidentally injured and unable to work. Employees are often able to get disability insurance covered by their employers, but the self-employed need to seek out coverage on their own. Even if you have money saved up for a rainy day, getting disability insurance is another smart move for people who work from home.
Protecting Your Assets
You can probably save yourself a good chunk on monthly insurance premiums by working from home without insurance. You may never be sued by a dissatisfied client or suffer a period of unemployment because of a short-term disability. None of those things may happen to you, but what would happen if your business suddenly faced these hardships? It is likely that your personal assets would be depleted quickly if you had to pay legal fees that you were not anticipating or go without income. Overall, opting for insurance if you work from home is just the better deal.
Many people who work from home need to shave off costs wherever possible. Running a business out of your home may be convenient, but it can take some time before you feel confident about your financial future. Think of insurance as just another investment that you would normally make into your company, like a desk or postage fees; only this type of investment has no ceiling.