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Do I need to let my insurance company know if I’m working from home?

More and more Canadians are working from home full-time or part-time – especially thanks to the Covid-19 pandemic. Others are running a full-time or part-time business or side-hustle from their home as well. Are you covered by your home insurance when working from home? Do you need to let your insurance company know you’re working from home?

The simple answer is yes, you should let your insurance company know you’re working from home. If you are not the business owner, working from home should not impact your home insurance. If you are the business owner, you may need to get a home-based business endorsement or a separate commercial insurance policy to ensure your company’s property and liability are covered.

Working from Home

Most home insurance policies allow working from home, although they may not cover any liability if clients are visiting you at home. You should still let your insurer know you’re working from home and the nature of your work.

If you’re an employee working from home there are three main risks to consider:

  1. Company property being stolen, damaged or destroyed.
  2. Injury to a client or damage to their property while visiting your home.
  3. Data security and privacy.

You should ensure your employer’s insurance will cover you in all scenarios and take measures to protect yourself from these three risks.

Home-Based Business Insurance

If you operate a small business from your home, you may be able to get a home-based business endorsement. This is an add-on to your home insurance policy that will cover your business-related property and liability. Your regular home insurance will not cover anything related to your business unless you have this endorsement.

This coverage isn’t offered by all home insurers and your business may not qualify – it depends on what you do.

Separate Commercial Insurance

Depending on your business, you may need a separate commercial insurance policy if you’re working from home. This will ensure your company’s property and liability are properly covered. There is a wide range of coverages available for businesses, including:

  • Commercial Property
  • Commercial General Liability
  • Professional Liability (Errors & Omissions)
  • Product Liability
  • Cyber Liability
  • Equipment Breakdown

Your insurance broker can advise which are required for your company and answer any questions you might have about your insurance and working from home.