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More and more Americans than ever are working from home today. Companies are realizing that “remote workers” can be as productive, if not more so, that those who come into the office every day. Remote workers are still employed by their organizations, however. There are times, though, when working from home may actually be operating your own business. Here are some possible examples.
You Sell Products or Services You Produce
If you make hand-made items, create pieces of art or design jewelry at home to sell for a profit, you are likely operating a small business from home. Likewise, if you are operating a handyman service, walk dogs, perform landscaping or offer other services with your home as your office, it is likely a home business.
You Provide Contract Services.
More people are performing tasks at home to earn money as “free-lancers”. This can range from designing company logos and artwork to photography and writing. These freelancers are, in essence, conducting business from their own homes. The loss of any specific business related items from theft or damage like expensive cameras or computers may not be covered under a basic homeowners’ insurance policy.
You are Multi-Level Marketing
Multi-level marketing programs remain popular and range from health and beauty products to kitchen tools to cleaning products. If you are involved in such a program, be cautious. Holding business-related meetings in a home could lead to liability risks not covered under a home insurance policy. If you store lots of inventory of these products or have them delivered to your home they may also not be covered in a theft or other loss.
You Provide Childcare Services
While watching the occasional child is not probably going to be an issue, if you perform such duties regularly in your own home it could be considered operating a home business.
You should understand that although some municipalities and even HOA’s may have rules about conducting a business from a home, it is generally not a legal issue. It can, however, be an issue when it comes to liability. Some who conduct small business activities at home simply presume they will be covered under their basic homeowners insurance policy and that may not be the case. Contact your independent insurance agent to discuss business activities you may be conducting at home. While your accountant can assist you with tax ramifications of these activities, our agents can help protect you from losses due to fires, natural disasters and liability claims. Contact us today.