Working from home insurance
Whether you’re continuing to work from home after the pandemic or you’re setting up a business in your front room, you’ll want to make sure that you and your work equipment are financially protected if things go wrong. Here’s what you need to know about working from home insurance.
Whether you’re continuing to work from home after the pandemic or you’re setting up a business in your front room, you’ll want to make sure that you and your work equipment are financially protected if things go wrong. Here’s what you need to know about working from home insurance.
What can working from home insurance cover?
Insurance can compensate you financially if your work equipment or stock is damaged or stolen, or a client is injured when visiting your home. Business insurance can also cover you for compensation claims if an employee is injured or becomes ill as a result of working for you.
Not all home workers will need to take out a business insurance policy, but it’s important to make sure you have the right cover for all your business needs.
Do I need working from home insurance?
If you’re an employee who is continuing to do purely clerical work from home since the pandemic – say a few days a week – you probably won’t need any extra working from home insurance.
But if you’re setting up a business from home, you may need to add extra cover to your existing home insurance policy or take out separate business insurance to make sure you’re properly covered.
Should I tell my home insurance provider I’m working from home?
Yes, you need to tell your insurance provider that you’re working from home. It’s best to check with them whether you need to add extra cover to your existing home insurance, although this is unlikely if you only work from home very occasionally.
Anyone who runs a business from home should discuss the specific cover they need with their insurance provider to make sure they’re properly protected.
Is working from home covered by home insurance?
It depends, as policies can vary. Your home contents insurance could give you some cover for your equipment if you’re simply doing admin duties at home. But it’s important to check the wording carefully as many policies will specifically exclude items used for ‘business or professional purposes’.
Even if your policy does cover your working equipment, it may be limited to items inside your home. So, if you take things like your laptop and smartphone out and about, you may want to consider adding personal possessions outside the home to your home insurance policy.
Standard home insurance is unlikely to cover you if you have business visitors to your home or use your home for business activities other than office work.
Do I need business insurance if I work from home?
You’ll probably need business insurance if:
- You have customers or clients who regularly visit your property
- You have an employee who is essential to the running of your business
- Your business would suffer significantly if you were unable to work due to accident or illness
- Your business activities could injure or kill a member of the public, or damage their property
- You offer advisory services that could result in legal action being taken against you
- You have stock or other items that would need replacing if they’re stolen or damaged.
Did you know?Business insurance is an allowable tax-deductible expense. So, if you’re running a business from home and you’re self-employed, you can claim it back from HMRC as part of your annual tax return. |
What type of insurance should I consider for my home business?
Every business is different, so you need to make sure you get the right cover for you. Here’s a range of working from home business insurance policies you might need:
- Employers’ liability insurance – this could cover you if one of your employees becomes ill or is injured as a result of working for you. If you employ one or more people or are a limited company with multiple directors, it's a legal requirement to have cover. If you're not a limited company, it's not a legal requirement to have employers' liability insurance if the employees are immediate family members, though if a policy is in place it would still cover immediate family members working for you.
- Public liability insurance can cover you if someone has an accident on your property or is injured by your business activities. If you have customers or clients visiting your home, it’s something you may want to consider.
- Business contents insurance could help compensate you for the cost of fixing or replacing equipment or stock if you keep it at home for business use.
- Professional indemnity insurance can cover the cost of compensating your clients if they suffer any loss or damage because of advice you’ve provided.
- Product liability insurance can compensate you if someone makes a claim against you because of a fault in a product you designed, manufactured or supplied.
- Commercial vehicle insurance – if your business uses cars or vans, you’re legally required to insure them. Always check to see if your business policy covers your vehicles.
- Income protection cover can provide you with a salary if an accident or illness prevents you from working.
How can I compare business insurance?
You can compare business insurance right here at Comparethemarket. No two home businesses are the same, so it’s important to compare business insurance if you need it for the type of work you do. You can tailor your cover to include all the elements relevant to your business. Start a quote with us and we’ll help you find a competitive price for the cover you need.
We can also help you compare home insurance if you’re looking for a better deal or want to add extra cover for your home-based work.
Frequently asked questions
Is my employer’s equipment covered in my home?
Your employer’s business insurance should cover any equipment they own that you’re using to work remotely. They should take responsibility for making sure they have enough cover, so you won’t need to list things like company laptops and printers under your home contents policy.
Does my home insurance cover my garden office?
Your shed or garden room should already be covered by your home contents or buildings insurance. But if you’re planning to use it as an office or to run a business from it, you need to check with your insurance provider that equipment including computers or furniture are covered. And you may need to invest in some additional security.
Will my insurance cost more if I’m working from home?
It may do. If you’re doing clerical work previously done in the office, and no additional equipment is necessary, your premium may not go up. But if you run a business from home, the cost of your insurance could rise because you’re perceived as a greater risk of making a claim. How much you pay will depend on the type of equipment you have on site and whether you have regular visitors to your property.
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Mubina Pirmohamed - Business and landlord insurance expert
With almost 15 years’ experience in the insurance industry, Mubina is an expert from one end to the other. From leading the introduction of new products, marketing them, innovating them, all the way to handling claims with customers. At some point in her career, she’s done it all.