Is General Liability Insurance Needed When Working From Home?

Operating a business out of your home can provide a convenient, flexible and comfortable work environment. Furthermore, working out of your home can also have financial advantages, such as not having to rent or lease commercial premises. However, home-based companies must ensure they assess and address their insurance needs with the same diligence as they would in a traditional business environment. General liability insurance is one form of coverage that remains essential even if you are working out of your home.

What Is General Liability Insurance?

As its name suggests, general liability insurance provides a broad spectrum of coverage that can render financial assistance in response to many common incidents. The usefulness of these policies transcends industry lines and addresses many risks and exposures that may exist regardless of size or sector. A suitable general liability insurance policy may be an invaluable investment for all organizations.

What Does General Liability Insurance Cover?

General liability insurance can insulate you and your business from financial losses and costs arising from incidents that affect third parties. Although your policy’s details may vary, this type of coverage can generally render aid in response to the following:

• Bodily injuries—If your business’s operations or products cause a third party to suffer bodily harm, general liability insurance can help pay for the victim’s medical bills, compensate them for lost or reduced wages and cover your legal costs if the incident leads to a lawsuit.
• Property damage—Your general liability insurance can provide financial assistance to repair or replace another party’s property if your business is responsible for damages.
• Personal and advertising injuries—This coverage can help pay for legal costs if you are responsible for another party’s personal injury or reputational harm. This may include allegations of slander, libel, copyright infringement or false advertising.

Who Needs General Liability Insurance?

Even when operating your business from home, general liability insurance is essential to an adequate coverage portfolio. If a client visiting your home is injured or their possessions are damaged, your insurance can insulate you from financial losses that might otherwise need to be paid out of pocket. Similarly, general liability insurance can provide critical financial protection if you travel to a client’s location and cause an accident from which they accrue losses. Without adequate coverage, even a single accident or error for which you are responsible could have lasting ramifications for your finances and future.

Get the Right Coverage

For over 15 years, the dedicated staff at Freeman Insurance Services have operated with the mission of helping individuals, families and businesses protect themselves with optimal coverage solutions. We can help you understand the complexities and nuances of general liability insurance, and ensure that you have ideal coverage. Visit our website or call 510-528-2700 to get started today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.