Working from home can be an incredibly fulfilling experience. Whether you’re making the most out of your startup budget by saving the expense of renting a separate office space, taking care of your children during the work day, or just want to be able to do business in your pajamas, working from home offers a flexibility that in-office jobs don’t boast. However, running a company out of your place of residence also comes with its own unique risks and challenges. Here’s what you need to know if you’re running a business out of your home:

You can be sued for accidents that happen in your home

If you are a solopreneur, it is common sense that getting sick or injured impacts your bottom line. But what you may not realize is that if you have employees or clients who come to your home to do business, you may be held responsible for their accidents.

According to Small Biz Ahead, if a client or employee trips in your home and requires medical attention, you may be liable for the damages. Taking care to keep your residence in good condition such as filling in potentially dangerous cracks or pitfalls and weatherproofing can help to avoid incidents that may lead to injury. In addition, having worker’s compensation coverage will protect you from being sued if an employee gets injured on the job.

You can still be sued just like a brick-and-mortar business

In addition to being sued for injury on your property, you’re also still vulnerable to any other types of lawsuits that could be filed against a business with a public location. Since your homeowner’s insurance will likely not cover business disputes, making sure you have the proper coverage can help limit the risk to you.

Natural disasters that affect your home also affect your business

If your home experiences a fire, flood, hurricane, or other natural disaster, so will your business. This means that all of your records and equipment may be out of service or destroyed, and you may be unable to conduct business while you sort out the damage and make the necessary repairs to your property.

Your home network is likely not as secure as a business network

If you’re using you home internet connection to do your work, you should look into the security of your network. Protecting your company’s data against attackers is different than basic home data security, and is it a good idea to take extra precautions to make sure that all your information isn’t accessible by anybody to whom you do not give access.

Running a business from home can be great for both your productivity and your bottom line, but it does offer unique challenges that can only be overcome with planning and preparation. Making sure that you’re properly insured and secured can alleviate the headache of potential lawsuits or accidents and make working from home a much less stressful experience. Kick back with your laptop and your PJs having peace of mind that you- and your business- are covered.

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