Working from home insurance guide

Not only do you and your business face greater risks than the normal householder, failing to inform your insurer that you work from home could mean that your existing home insurance is invalidated. However, some insurers can extend the protection provided under your existing home insurance to include the cover needed for your business. If you are unsure whether your existing policy is sufficient, always check with your insurer, who will then be able to confirm whether they can provide the cover you need.

Working from home insurance (commonly known as ‘home worker insurance’) is a separate product to home insurance and will provide cover for both your business and personal insurance needs

You can also visit our home insurance guide, which details the features generally available from home insurance policies.

What working from home insurance cover is available?

Insurance for home workers will typically cover the following:

• Office contents
• Portable equipment (i.e. laptops, mobile phones)
• Public and employers’ liability
• Business interruption (loss of revenue due to not being able to run your business as a result of a disaster)
• Goods-in-transit cover
• Cover for business money kept on the premises, in transit or in a safe.
• The policy will typically cover legal expenses for the following risks:
• Buildings
• Personal contents
• Personal possessions cover for items taken out of the home.

What does working from home insurance cover?

Insurance for home workers will typically insure your buildings, business and personal contents against a number of specified perils. This means they are covered against the loss of or damage caused as a result of:

• fire, smoke or explosion
• storm, flood, lightning or earthquake
• riot, civil unrest, malicious acts and labour or political disturbances
• impact from aircraft or other flying objects, or anything falling off them
• water escaping or freezing from water tanks, pipes, equipment or fixed heating systems
• oil leaking from a fixed heating system
• theft or attempted theft
• falling radio and television aerials and dishes, and their fittings and masts
• subsidence

Additional cover options

Accidental damage cover

Most insurance for home workers will also allow you to extend the cover provided to include accidental damage. For example, if you accidentally drop your laptop and break it, cover is provided for any repairs needed, or a replacement if it is beyond repair.

Accidental damage cover is usually offered as an optional extra, which incurs an extra cost.

Personal possessions cover

You can also extend your home worker insurance policy, at an additional cost, to include items that you take out of your home, such as sports equipment, clothing, laptop computers, cameras and jewellery. There is likely to be a cover limit for items not specifically mentioned in the policy.

Business legal expenses cover

Legal expenses cover is usually available as an added extra to insurance for home workers, and provides confidential advice on any personal or commercial legal matter. The cover also includes the costs incurred in hiring a solicitor to help pursue or defend certain business or personal legal issues. The typical limits provided range from £25,000-£50,000.

Home worker insurance exclusions

There are a number of common exclusions, (usually referred to as ‘general exclusions’) that are applicable within a home worker insurance policy. These exclusions can include losses arising out of: war, terrorism, sonic bangs, radioactive contamination or wear and tear.

There are also exclusions that can apply for each section of cover and these should be read in conjunction with the general exclusions.

All insurers’ policy conditions state that you will be required to keep losses to a minimum by taking pre-emptive action to contain or prevent damage. You are required to take good care of your property and ensure it is maintained in a good condition.

Home worker insurance excesses

An excess is the amount of money you will pay towards the cost of a claim. Excesses are either applied as a compulsory excess, or can be selected as a voluntary excess, in return for a reduction in premium.

There may also be separate excesses applicable for your business insurance cover. For example, business equipment may have a compulsory excess of £100, but for claims on public liability cover an excess of £250 may be applied.

Top tips for insurance for home workers

• Purchasing your policy directly via an insurers’ website could gain you a discount
• Fitting approved window and door locks also generates savings with most providers
• If you have an alarm fitted, remember to inform your insurer
• Being a member of a neighbourhood watch scheme will count in your favour
• Higher excesses mean bigger discounts
• Check the direct debit fee charge as many insurance providers now offer 0% fees
• If you have another insurance policy with the same provider, mention this as you could get a reduction on your premium
• Always check the policy excesses to ensure you are aware of the amounts you are required to pay if you make a claim
• Check the cover limits for both your business and personal contents
• Check whether the insurer charges for policy amendments

There are a couple of things to watch out for when looking for home worker insurance:

• Be aware of any policy endorsements the insurance provider applies
• Insurance providers do not try to make things complicated but they are always careful to minimise the risks involved. If you are unsure, always ask the provider of the policy to explain in more detail before you purchase cover so that you are sure that the policy meets your needs.