Insurance implications of working from home

In the world of hybrid working, many of us spend at least part of our week working from home. As your home insurance policy is designed for domestic use, your business activities may not be covered under your current policy.

In this article, we’ll be breaking down the ways insurers view home working, to help you understand what type of insurance you might need:

Clerical use

If your work involves you carrying out administrative or documentation tasks using a computer, your insurer will likely view this as low-risk and offer cover under your current policy.

This may extend to covering basic office equipment like your laptop, but you should still check this with your insurance provider. Informing your insurer that you’re working from home also means they can update any policy documents if required.

Commercial use

If you use your home to see clients, hold stock or manufacture products, you’ll need to take out business or office insurance.

The same applies if you’re using industry specific equipment or tools of trade, as these will not be covered under your standard home insurance.

As well as buildings and contents, specialist business insurance usually provides interruption cover if you have to stop working for a period of time. It also covers your professional relationships, from employers’ liability to fidelity guarantee (the latter protects against fraud or dishonesty).

Liability cover

If you employ anyone who works from home with you, you’re legally required to have employer’s liability cover. You may also wish to take out public liability cover for any clients, customers or couriers who come to your home. This provides cover if they suffer from any injuries or accidents.

The rise of side hustles

If you’re selling items on sites like Vinted or eBay, you may not consider this a formal business. However, if you’re holding significant stock at home, be it old clothes, toys or collectables, this could send you over your contents limit on your home insurance.

Even if you aren’t turning over a significant profit, insurers will still class this as business use. If you don’t declare your side hustle to your insurer, it could invalidate any claims you make in the future.

Speaking to an expert

At Wesleyan Financial Services, you can discuss any home business use with us. We can help you identify potential gaps in your cover and arrange appropriate protection, whether it's an extension to your existing policy or guiding you towards a suitable specialist solution.