While many performing their jobs have long done so away from a traditional office, the viral pandemic created a tremendous surge of persons working from home (WFH). It was as inevitable as it was sudden, as employers were motivated by worker safety as well as a need to comply with government orders to shelter at home.

Suddenly, millions who had, at most, only occasionally performed some minor work activities from home, were now doing so at home on a full-time basis. A change such as this means that, at least temporarily, homes were being used for a greater level of business purpose than they had been.

In many instances, working from home may not include a significant concern with insurance issues. However, that is something you should investigate. You depend upon your residential insurance to protect your belongings as well as provide liability coverage. It is important to be certain about how your protection may be affected by WFH duties.

With regard to property, residential insurance is designed to cover losses to items that are closely connected to personal rather than business use. While insurance does provide very modest coverage for incidental business property, you may wish to arrange for separate or increased coverage if you have had to add expensive property or equipment to your residence in order to facilitate WFH. 

Example: Jasmine has now been required to WFH. She is a graphic artist and photographer for a magazine publisher. She has added the following equipment to her home to perform her job:

• 30 in., enhanced display monitor
• Stylus and graphics tablet
• Digital Single Lens Reflex Camera
• Adjustable drawing and composition table
• Storage cabinets
• Studio lighting and additional photography equipment

Jasmine would need special coverage for all of the above as it is used entirely for business. Further, after using some of the property to transform an area of her garage for a photography studio to take photos for her job, her garage will now need separate coverage.

Be aware that certain types of property, such as electronics, are subject to coverage limitations because of their nature and their use. Be sure to check with an insurance professional to explore what coverage options are available for you. It would also be helpful to check with your employer to make sure company owned equipment kept at your residence is protected by coverage it may carry.

Please see our companion piece, Working From Home, Liability Concerns, for additional considerations