What insurance do I need to work from home?

Flexible and hybrid working has become a standardized part of the UK economy following the Employment Relations (Flexible Working) Act 2023, which came into force in April 2024. This legislation makes the right to request flexible working a 'day-one' right for all employees, leading to a permanent shift in how we use our homes as workspaces.

Here, we take a look at what to consider if you’re working or running a business from home.

Do I need to tell my insurer I’m working from home?

Generally speaking, yes, you should tell your insurer if you work from home or are planning to (for example, if you’re thinking of becoming self-employed). You won’t necessarily need any additional cover, but you should let your insurer know just in case.

If you’re working from home

It is a common misconception that home office use is automatically covered by home insurance. While standard office-based clerical work is often included, using your home as a business premises without informing your insurer can invalidate your coverage. Recent market data indicates that 6% of policyholders have inadvertently voided their insurance by failing to declare business activities such as storing commercial stock or hosting professional visitors.

Guidance from the Association of British Insurers (ABI) explains some of the questions to ask when deciding what type of insurance you need for work, even when working from home:

Does my home insurance already cover me to work from home?

This really depends on what you do and what the terms of your home insurance say about working from home. Remember that insurers set their own conditions so you should always double check.

For example, some policies already cover certain types of home working activities but these will usually be restricted to clerical work, for instance management or advisory services. But if you meet clients in your home or store stock on site, then it’s unlikely that standard home insurance will give you the cover you need if something unexpected happens.

What insurance do I need to work from home?

Again, this really comes down to the type of business you run and the work activities you’re doing at home.

Most contents insurance will cover basic home office equipment and furniture like a computer, laptop, printer, desk and chair. But don’t forget that almost all contents insurance will come with a single item (article) limit. This is the maximum amount of money your insurer will pay out for any one item. So, if (for instance) you’ve got a very expensive camera, computer, or printer, you’ll need to make sure your policy covers the cost of a replacement.

Depending on what you do, you might want to consider other types of insurance which can usually be added on to your existing home insurance policy, for example:

Public liability insurance

Some home insurance policies will already include public liability as it covers injury to visitors or damage to their property; for instance, if someone trips on a step and drops their phone.

However, if you’re working from home and frequently meeting clients face to face, you might need more public liability cover than your existing policy provides.

Professional indemnity insurance

This covers any advice you give as part of your job, for example, if you’re an accountant or architect. Policies pay legal costs and compensation claims if a client takes you to court because they think the advice you’ve provided is wrong or has lost them money.

Product liability insurance

This covers legal fees and compensation costs if a customer sues you because a product you’ve provided has injured them or damaged their property.

Employers’ liability insurance

If you have any employees then you must have employers’ liability insurance by law. Policies cover compensation if a member of staff is hurt or becomes sick while working for you.

If you need employers’ liability cover but don’t have it, you can be fined up to £2,500 for every day you’re not insured. There are a handful of exemptions, for example if you only employ immediate family members and are not a limited company. A full list of exemptions can be found at the Health and Safety Executive (HSE).

Does my home insurance cover a garden office or studio?

If you’re using an existing outbuilding like a shed or garage, any structural damage will be covered by your buildings insurance. Most home contents policies will also cover what’s inside the shed, but it’s always check that this is the case as policies vary by insurer. A well-equipped garden office may mean you need to increase the amount of cover you have.

If you’re thinking about building a garden office, you should contact your insurer so that they can update any existing policies you have or offer advice about your options. By the same token, if you’re carrying out extensive renovations to an outbuilding, let your home insurance company know.

Should I choose business insurance if I run my company from home?

As your business grows, you might find that a separate business insurance policy may be better for your needs. In certain situations, you may not have a choice – especially if you keep stock of hazardous items like gas bottles.

Do I need business car insurance if I work from home?

A car used for work related activities like delivering products or visiting clients in different locations must be covered by business car insurance. If you don’t have the right cover and need to claim, your insurer could refuse to pay out.

Search for home insurance you can rely on

It’s crucial to protect your home, whether you work from there or not which is why it’s important to have home insurance you can rely on.

From buildings to contents cover, take a look at our handy home insurance guides that will help you make informed decisions about what you might need. We’ve also teamed up with Quotezone so that when you’re ready to compare policies, you can do that right here.

With a new law that will enable flexible working requests from day one, it's becoming more and more important that people understand insurance requirements when working from home.

And, as always, it's best practice to check with your home insurance company to disclose your work-from-home situation and find out how you're covered!