Working from Home: Are you insured?.

April 2020

Many businesses, like us, have had to very quickly transition to some or all staff working from home during the Coronavirus epidemic. This has led to a sudden increase in business property being used away from the premises and, in some cases, a significant investment has been made in purchasing new IT equipment to enable homeworking.

Whether or not the equipment is covered away from your business premises will depend on the cover that you already had in place and also, to some extent, on what adjustments insurers might have made to their policies in light of current circumstances.

The position varies from insurer to insurer. As an example, two responses we received from major insurers were as follows;

As we are all being encouraged to work from home, we would remind clients that the Temporary Removal extensions within our policies will apply for any Business Contents Risks to the limits stated where employees are working from home with Business Equipment.
Similarly, we understand clients may wish to move stock to employees’ homes due to a closure as a result of COVID-19. This would probably be safer than leaving the stock within an unoccupied property. In these cases, we shall deem policies to have the Third Party Storage Sites extension, and that for the duration of the crisis this is operative on all policies where a Material Damage section is included.

To support you and your clients, we’re automatically extending our existing policy cover to provide the same level of protection your business clients currently enjoy so they can carry out their normal business activities at their home and the homes of their employees.
This extension applies to the following covers where they’re insured under their existing policies;
1. Business Equipment
2. Employers Liability
3. Public Liability
We’ll also provide cover for their business equipment whilst in transit to and from their homes.
All we ask is that your clients and their employees take reasonable precautions to protect their assets and employees during this time.
Any existing policy terms, conditions and exclusions will remain unaltered and apply to their respective homes. There will of course be no additional charge for this cover.
This extension will apply until further notice and we’ll contact you so you can let your business clients know 30 days prior to this extension of cover being withdrawn.

Both these approaches show a willingness to help but are very different in their application so please check with us for your particular insurers response.

If you have purchased additional IT equipment then you should let us know straight away so that we can add the necessary cover to your policy.

Get in touch.