5. Insurance

All homeworkers should inform their home insurance providers of the change in their working conditions.  This is to make sure that in the event of an accident, particularly one caused by homeworking, the claim will be paid.

For the employer, there are some details to be aware of.

Employees recruited on the understanding that they are based at home.

Those people who have decided that working from home is what suits them are responsible for their own home insurance.  They must inform their insurance provider and make sure they have sufficient and appropriate cover.  If the work they will be carrying out carries specific risks, e.g. assembling electrical equipment, then the employer should offer to pay any increase in the premium.  Note we said “should” and not “must” – something to be agreed between employer and employee.

Employees who have to work from home due to a change in employer’s circumstances.

Those people who have been asked to work from home should not be liable for any increase in their insurance premium, as it was never their intention to be home-based.  The employer must therefore cover the difference.  Even if the change is temporary.

Added risks

The main concern for those working from home is fire: electrical equipment is a common cause of fire and if an investigation following a fire showed that the work equipment was to blame, the insurance company could refuse to pay if they hadn’t been notified of the change in circumstances. 

Other risks include: manual handling injuries (lifting and carrying work equipment, deliveries), musculo-skeletal disorders from an unsuitable workstation, holding meetings at home (unlikely to be the source of an insurance claim but worth taking into consideration; visitors could bring their own electrical equipment and overload the electrical system, or go raving mad and attack the employee.  Unlikely, but you never know!).

The message is – make sure the insurance company is informed!.