As of October 2015, more than 1.5 million Canadians are self-employed, and that figure increases by approximately 500,000 each year. If you belong to the growing group of self-employed workers and plan to conduct the majority of your business from home, make sure your budget includes funds for a home insurance policy. Whether you've owned a house for years or just recently begun renting an apartment, here are four reasons why a home insurance plan is important for self-employed workers.
1. Accident Coverage
Statistics Canada reports that falls are the leading cause of injury for Canadian residents, with falls accounting for injuries obtained by approximately 35% of working-age adults, 50% of adolescents, and 63% of senior citizens. If a client or business partner falls on an ice-covered front porch or slips on a freshly mopped kitchen floor while visiting you, you might be responsible for the cost of your guest's injuries. A home insurance plan may help cover the cost of unexpected injuries obtained by visitors and pay for the costs of damage, such as a cracked floor or dented wall, associated with the accident.
When you apply for home insurance coverage, ask the agent how you can obtain protection against personal injury claims. Some policies cover legal expenses associated with injuries obtained by visitors to your home, while other policies focus on reimbursement for medical expenses. Your insurance representative will help you determine which option best meets your needs.
Think about the items you use to conduct your business. Could you easily pay out of pocket to replace them if they were damaged during a home invasion, fire, or flood?
Here are some items you might use to conduct business while you're at home:
- laptop or desktop computer
- professional camera
- video recording device
- digital planner
- copy machine
- dictation equipment
Make a list of commonly used equipment before contacting an insurance representative so you can learn which items are covered if an unexpected issue, such as a severe earthquake or gas explosion, occurs. An insurance representative may also have tips on how to prevent your electronics from being the culprit—rather than the victim—of an unexpected emergency, such as a house fire.
Approximately 11% of home invasions are executed by someone the victim of the invasion knows, such as a business acquaintance or friend. If someone you conduct business with sees valuable items during an in-home meeting, you might have your possessions stolen at a later date. Your home's windows or doors might also be damaged during the break-in.
A home insurance plan protects your assets if you are the victim of a domestic robbery or break-in. Record a detailed inventory of your valuables with the help of an insurance representative, then submit this list when you enroll in a home insurance policy.
If your home catches on fire or is damaged during a break-in, you are going to need an alternate place to perform work-related tasks until you are able to repair or replace your home. Home insurance policies offer different levels of coverage for self-employed workers, and benefits may include any or all of the following:
- hotel room reimbursement, if you are unable to sleep or work in your home
- rental car reimbursement, if your automobile was parked on your personal property when an unfortunate event occurred
- reimbursement for rented office space where you can conduct your business matters
A top-notch home insurance policy gives you the flexibility to maintain successful self-employment after an unexpected issue makes it difficult to work or reside in your home. Schedule a consultation with a company that specializes in Canadian home insurance policies to learn more about protecting your living space and personal possessions.