Working from Home – Insurance Considerations

With today’s health concerns, many experts think it may be possible the workplace landscape has changed permanently. The future can be tricky to predict, but in many industries work-from-home seems to be the new normal. For some, this might mean working from home a few days a week. For others, home becomes the new office. 

While working from home gives you the freedom to wear your favorite Bunny slippers to work, there may be some serious considerations as well. If you make new renovations or buy new equipment to work from home, are you covered by your insurance policy? If you have a client at your home, will your liability insurance cover the risk? 

For many of us, working from home might just mean finding a quiet space to set up a laptop with room for your work files or paperwork. Chances are good that this does not require major renovations. But if you build additional rooms or even build a work office in an addition to your home, it is important to make your insurer aware of the changes you have made to your property. 

Equipment coverage 

Most home insurance policies provide basic coverage for some types of office equipment, such as standard laptops. However, your policy might not provide full replacement cost coverage and claims may also be subject to a deductible. 

Many insurers also cap coverage for business equipment with a lower dollar figure. For example, they may limit business equipment coverage to $5,000. Also, some insurers may not cover some specialty equipment at all. If you have any concerns, have a conversation with your agent or broker as well as your employer. It is possible that your employer’s insurance coverage extends to equipment used at home. 

If you are running your own business out of your home and own your equipment, reach out to your broker to learn about coverage options. You may need a separate policy or a home-business rider to protect your business and personal assets. 

Coverage for your home 

Most work-at-home situations do not require extensive renovations. But if you change your home, such as building an extra room or putting on an addition, reach out to your agent or broker to discuss your coverage needs. Your home insurance policy insures the rebuild value of your home, so major changes that affect the rebuild value may change the amount of insurance you need. 

Coverage for liability 

For some, work at home might also mean clients coming to your home. Personal liability coverage on your home insurance policy protects you against common liability risks, such as slip-and-fall accidents. However, your personal liability coverage does not extend to business-related risks. This means you may not have coverage through your personal policy in some situations. If your work situation requires business activity in your home, discuss your coverage needs with your broker.