Working from home and Home Insurance

Working from home has never been so easy or so widespread, but home workers should beware that they might need to adjust their home insurance, or risk invalidating their existing policy.working from home

Nearly four million people now work from home, according to recent figures from Workhubs, which helps people set up small businesses. But conventional Home Insurance may not adequately cover a home worker’s activities and changed circumstances.

A different type of cover may be required

You may want to adjust your cover or find a policy which includes ‘business’ equipment such as PCs and laptops (as opposed to items for standard personal use), the risk of interruption to your income and third party insurance if you have people visiting your home for business reasons.

Such cover is often referred to as ‘home worker insurance’ and you may need to discuss your circumstances and business activities with an insurer or insurance broker if you do work from home.

Here are some of the key factors to consider if you work from home:

‘All-risks cover’

    Ordinary home insurance generally only covers what’s considered ‘household administration’ duties in the home. You might need to supplement it with an ‘all-risks’ element which includes your business equipment.

This means you’d be able to include it in any claim for damage or loss either in the home or when away.

Third party liability

    If you work from home, there’s a good chance you’ll have people visiting your property for business reasons.

If they were injured, through an electric shock for example, or experienced damage to their possessions while in your home, it could result in a claim against you. Third party liability cover would ensure you’re protected against such claims.

Accidental damage

    If your current home insurance policy doesn’t include accidental damage to your property’s structure and contents you may wish to add it. If, for example, you were to break a laptop while working, you would need accidental damage cover to ensure you could claim for it.

What’s covered by home worker insurance

    Things which are covered by working from home insurance cover include office contents and equipment, portable equipment, business interruption (loss of earnings), goods-in-transit cover, legal expenses and personal possessions used for business purposes when taken and used away from the home.

Additional cover you may want to consider:

Employer’s liability insurance

      If people in your employment work from your home, you may be legally required to have employer’s liability insurance. This would be a totally separate policy to your home cover.

Product liability insurance 

    If you manufacture and supply products to customers, product liability insurance protects you from any claims that may result from your goods causing damage or injuring someone.

Professional indemnity insurance

    If you or your company provides advice, such as an accountant or solicitor would, professional indemnity insurance protects you against clients claiming for any losses they experience as a result of bad advice.

 

Policy Expert

Our dedicated customer service team is always on hand to help – either online or over the phone. Whether you want assistance in finding the right policy or even handling a claim, we make sure it’s all handled by experts. For more information on what‘s covered under your Home Insurance policy, speak to one of our experts on 0203 014 9300 or email ask@policyexpert.co.uk

About James

James is a journalist and digital editor with over 13 years’ experience writing and editing for media and finance businesses. He specialises in personal finance and economics, but also covers property, travel and news.

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