Can you get insurance coverage working from home?

working from home

Many companies have switched to having their employees working from home due to the pandemic, and there have been many questions about the changes or any changes to specific things. In this case, we will discuss how insurance works for people who work from home. Is insurance provided for working from home?

Working from home is covered by insurance, but some risks, such as health-related mishaps and property loss, should be considered. You should also check with your employer about worker compensation and health insurance.

We will discuss various aspects of working from home and how you will be protected. If you want to learn more about this subject, we recommend that you keep reading.


What Are the Dangers of Working From Home?

Working from home poses unique risks because you are on your property working for a business (unless you are the employer).

ALSO READ: 21 Important Insurance Salesperson Tips For Young or Inexperienced Insurance Agents.

Furthermore, each employer will operate differently, and you may find it more difficult to be compensated for unfortunate circumstances such as:

  • Property Loss: It is a good idea to have home insurance if you suffer property losses. Furthermore, if your job requires people to physically visit your home, having public liability insurance is a must.
  • Health-related (sickness or injured) (sickness or injured): Working from home and claiming to be sick or injured may not work out as well as working on-site. Employers may expect you to continue working from home because you are not leaving. Furthermore, when working from home, it can be extremely difficult to prove the cause of injury.
  • Liability: When working from home, your employer may require that your office space meet their safety standards. Furthermore, if you use their equipment, they will usually require you to have homeowner’s insurance coverage in case of damage.

What Does Your Employer’s Insurance Cover?

It is critical to confirm with your employer what they do and do not cover. However, in general, they will have the following types of coverage in place:

Employee Benefits

This is one of the most important things to look for in a potential employer. Worker compensation will cover lost wages, medical expenses, and rehabilitation costs while you are sick or injured on the job. You are at risk of financial harm if you do not have worker’s compensation, which is why working from home is just as important as working on-site.

Health Coverage

Health insurance, like workers’ compensation, is an important consideration when working from home (and working in general). Health insurance will cover a portion or all of your medical bills, avoiding the need for an individual plan or paying for all of your medical expenses out of pocket.

However, there are times when individual health insurance is preferable. For example, being able to select which provider and plan works best for you. Employer-provided health insurance is extremely convenient, but it is not always the best option for everyone’s needs.

Is my home insurance policy going to cover work from home?

If you own your own work equipment, the personal property coverage component of your homeowners insurance policy may compensate you if it is stolen or damaged as a result of a covered peril.

However, homeowners insurance has coverage limits, which are the maximum amount your insurer will pay out if your belongings are damaged. A typical homeowners insurance policy has a sublimit of $2,500 for business equipment, which may not be enough if you run your own at-home business or home office.

Standard home insurance usually does not provide adequate coverage for employees who work from home. A standard package, for example, may not cover damage to employer-owned equipment. In short, whether you are covered for business use and liability is dependent on what you do.

Certain conditions, such as having business visitors to your home, may affect the terms of your home insurance policy. It is critical to determine whether you require additional coverage.

If you work from home during the pandemic, you do not need to arrange a new policy or notify your insurance company because it is already covered by your policy.

Most office equipment will be covered up to the single item limit, so check your policy.

Do I have to notify my insurance company if I work from home?

Office workers who will continue to work from home do not need to notify their insurer unless:

  • Your company manufactures, sells, or stores goods in your home, especially if they are valuable or contain hazardous or flammable materials.
  • You have business visitors come to your house for face-to-face client meetings or for services like fitness instructor or hairdresser.
  • You have modified your home for business purposes, such as by converting an outbuilding into an office.
  • You have purchased new equipment for your business.
  • If you have moved or plan to move the operation of your business into your home, consult with your service provider.

What Kind of Insurance Do I Require If I Work From Home?

Depending on the nature of the job, you may want to consider having additional coverage for the following:

  • Liability to the public: As previously stated, public liability insurance is recommended if your job requires people to visit you or when you visit them. This type of insurance protects you in the event that someone is injured or breaks something on your property. It will also cover you if you inadvertently damage someone else’s property while on their property.
  • Indemnity for Professional Services: This will protect you if someone claims that the service or advice you provided cost them money or was incorrect. For example, if a work-from-home therapist gives advice that does not work for a client for whatever reason.

We will discuss what coverage is appropriate for specific types of workers.


Personal items are already covered by your homeowners insurance; if you’re just working on your computer or other equipment, you don’t need to add anything unless you want to.

Standard homeowners insurance policies will provide at least $100,000 in coverage, which is sufficient to cover the average person’s belongings. However, for business equipment, there is usually a $2,500 sub-limit (not to be confused with employer-supplied equipment).

If you use supplied equipment, some employers will cover the damages, but not all of them will, so check with them first. If you are found legally liable for equipment damage, personal liability coverage can cover legal fees if the employer decides to sue.

Contractors on their own

Independent contractors include jobs such as independent brokers, freelancers, and insurance agents. They are generally less protected than employees who work for a company that provides standard coverages such as workers compensation and equipment coverage.

In this case, it may be prudent to investigate business insurance. There are several options for coverage:

  • Home-based Business Insurance: This coverage is designed for home businesses with 2-3 employees that earn less than $250,000 per year. A standard package will typically include $10,000 in business property and income replacement coverage, data breach coverage, and liability protection.
  • Endorsements for Commercial Real Estate: This is ideal for self-employed individuals, consultants, or independent contractors. Instead of the standard $2,500 limit for business equipment coverage, it is increased to $5,000.
  • Business Owners Policy: This is similar to in-home business insurance, but it is for a company that earns more than $250,000 per year and employs more than three people. It’s also worth noting that if you have employees who work away from home, you’ll need a workers’ compensation policy.

Online Entrepreneur

In this case, homeowners’ insurance is not applicable to online businesses. You can extend your home insurance to cover business expenses, but if you keep any merchandise in your home or off-site, you should get stock insurance.

If you own a business that manufactures products, you are responsible for the quality, and you will be held liable if the product is defective or makes someone sick if it is food. In this case, product liability insurance is extremely beneficial.

Freelancers are also included in the pool of online business owners. Upwork and Fiverr are becoming increasingly popular as people look for freelance remote work in areas such as writing, graphic design, and web design.

Because you are creating content for individuals and businesses to use, they may attempt to sue you if they claim your work caused them financial harm (.ie, a bug in a website). This is why professional liability insurance exists.

Is it possible to deduct home insurance if I work from home?

Homeowners insurance is typically not tax deductible; however, if you work from home and have a home office, you may be able to deduct a portion of your homeowners insurance. How much of your premiums you can deduct is determined by the percentage of your home you use for business.


Working from home can be a blessing or a shocking change of pace, depending on who you ask, but knowing your insurance coverage is essential to avoid unpleasant surprises later. Unless you use personal equipment for your work, homeowners’ insurance isn’t usually a good way to protect yourself.

If your employer provides you with equipment, it is up to their policy to pay for damages or have their insurance cover it.

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