Do I need to take out any special insurance if I am working at home ?

Firstly, whether you are employed or self-employed, if you are working at home, you need to inform your Home Contents and Buildings insurer(s) of this fact, in writing.  If you don’t, and you subsequently suffer a reportable incident on which you make an insurance claim, you may be deemed to be either not properly insured, or under-insured.   Many employers provide a draft letter to their staff who are working at and from home.

If you are employed, the employer’s Home Working Policy should spell out exactly what the requirements are with regard to risk management and insurance.  The employee may be asked to sign an agreement or accept these requirements or terms before being allowed to work at home.  This policy should also indicate whether any additional insurance costs incurred by the home worker can be claimed under the Expenses Policy.  The repayment of any costs incurred by the employee in upgrading the home’s security provisions to meet an insurer’s or employer’s standards should also be covered in these policies.

If you are working at home you need to be insured against Public Liability by your employer or, if self-employed, through your own Home Contents insurance policy.  If you regularly hold business meetings at your home you must check that the policy actually covers this activity.

The equipment that you use in the home also needs to be covered by adequate insurance.  Where the employer owns and provides the equipment;  eg. a computer, printer, ‘phone, desk, storage and chair; this is normally done by the employer.  Where the employer asks the home worker to take out a home office insurance policy to cover the company’s equipment being used in the home, the employer and employee should also sign an agreement that transfers  the insurable interest in the equipment, (which must be specifically detailed in the agreement), to the employee.  If the equipment used is owned by yourself, it normally needs to be declared under the Home Contents policy.  Most home contents policies already provide some cover for itemised equipment, usually for a value of between £5,000 to £20,000.

It may also be necessary to provide insurance cover for equipment and people while in transit.

The employer must ensure that their corporate Employer’s Liability Insurance (ELI) is extended to cover staff who are required or instructed to work at/from their own homes.  In many cases, employers find that their employees are already covered for work outside the office.

Note that some insurance companies insist that employers conduct a visit to the employee’s home as part of the corporate risk management procedures, before working at home can begin.