The Hidden Insurance Risks of Working From Home
Working from home has become a normal part of life for many people. Whether you're working remotely full-time, splitting your week between home and the office, or running your own business from a spare room, it's worth taking a moment to consider how your home insurance might be affected.
Many people assume that working from home has no impact on their insurance. In many cases that's true, but not always. Understanding the difference can help you avoid unexpected issues if you ever need to make a claim.
Does working from home affect your home insurance?
For most people who work remotely for an employer using a laptop and phone, working from home is unlikely to require changes to their home insurance. However, every insurer is different, so it's always a good idea to let your insurer know if your home has become your regular workplace.
If you're using your home for business purposes beyond office work, your insurance needs may be different.
When should you tell your insurer?
You should consider informing your insurer if you:
Run a business from home.
Keep business stock or equipment at home.
Have customers or clients visiting your property.
Receive regular business deliveries.
Carry out manufacturing, repairs or other commercial activities from home.
These activities can increase the level of risk and may not be covered under a standard home insurance policy.
What about work equipment?
Many employers provide equipment such as laptops, monitors, phones and office furniture. While these items may be covered by your employer's insurance, it's important not to assume they are.
You may want to check:
Who is responsible if the equipment is stolen from your home.
Whether accidental damage is covered.
Whether the equipment is insured while travelling between home and the office.
Your employer should be able to explain what their insurance covers, while your own insurer can advise whether your home policy provides any protection.
Running a business from home
If you're self-employed or operate a business from your home, your insurance requirements may be different.
Examples include:
Online retailers storing products at home.
Hairdressers or beauty therapists working from a home salon.
Tutors teaching students at home.
Photographers storing expensive equipment.
Consultants meeting clients in a home office.
In these situations, standard home insurance may not provide all the cover you need. Depending on the nature of your business, you may require additional business insurance.
Don't forget about liability
If someone visits your home for business purposes and is injured, your personal home insurance may not always provide the protection you expect.
Similarly, if your business activities accidentally cause damage to someone else's property, separate business liability insurance may be appropriate.
The type of cover needed will depend on the work you do.
A quick insurance check-up
If you've started working from home in the past few years, it's worth asking yourself a few simple questions:
Has your home become your main place of work?
Do you keep business equipment or stock at home?
Do customers or suppliers visit your property?
Has your work from home arrangement changed since you last renewed your insurance?
If the answer to any of these is yes, it's worth speaking with your insurer or insurance intermediary to make sure your cover still meets your needs.
The bottom line
Working from home doesn't automatically mean you need new insurance. For many employees, there may be little or no impact at all.
However, if your home is also your place of business, or if your work activities have changed, it's worth checking that your insurance reflects those changes.
A short conversation with your insurer today could help avoid surprises if you ever need to make a claim.
Need More Assistance?
If you have further questions, you can contact Insurance Ireland’s Information Services team:
Email: feedback@insuranceireland.eu
Tel: (01) 676 1820