Do you need remote worker insurance?

Regardless of when you started working from home, if you haven’t looked into remote worker insurance implications, now is the time. Insurance for remote workers is straightforward but does require a bit of work and some basic math. We’ve put together a list of common questions and misconceptions to bring some clarity to the subject for remote workers.

Does home insurance cover working from home?

Some good news first: yes. There is no remote worker insurance policy that you can buy so your homeowners, renters or condo insurance would provide coverage for you while working from home. It gets a little complicated when discussing your equipment.

If you own your equipment – this is covered by your homeowners insurance. Check your policy to see your coverage limit for business and work equipment. Depending on your limit and the price of your equipment, you may find that you need to increase your coverage. It might also be a good time to evaluate if you want coverage for actual cash value or replacement cost. A policy based on replacement cost would get you back up and working with less out-of-pocket impact after a claim.

If your company owns your equipment – your employer would provide insurance for remote workers’ equipment. There would be no implications for your insurance policy. However, some companies require employees replace damaged equipment.

Do you need extra insurance when working from home?

It really depends. Here are a few scenarios to help you decide:

• Scenario 1: You own a $1,500 laptop to do your work. You have no other work equipment. Your business and work equipment coverage limit is $2,500. You do not need additional coverage.
• Scenario 2: You own a $1,500 laptop and two monitors worth $500. Your business and work equipment coverage limit is $1,000. You need additional coverage.
• Scenario 3: Your company supplies you with a laptop, two monitors and a phone. Regardless of the value and your coverage limit, you do not need additional coverage.

Can I add extra coverage to my home insurance policy?

If you recognize yourself in Scenario 2, you can remedy the situation. Contact the VIU by HUB Advisory Team, or your insurance company, and tell them you’re a remote worker with insurance coverage that might be too low, and you want to discuss your property coverage limits. You need to make sure that your home policy covers the work that you are doing, the type of company you’re working for and the equipment that you’re using.

Does homeowners insurance cover full-time employees?

Homeowners insurance covers all employees who meet the criteria above and in their policies. This is true for full-time, part-time, contractors, freelancers or any other type of remote worker in their own home. Insurance coverage is for the equipment, not the person. However, if you have employees working full time, you will need a commercial policy.

Can I deduct home insurance if I work from home?

Maybe! But probably not. Since 2018, only self-employed people can deduct their home office and equipment from their taxes. No deductions can be made if you’re working as an employee. Even as the owner, you’ll need to be cautious about what percentages are deducted and for what equipment and space. In general:

• If you’re an employee: you can’t deduct your insurance.
• If you’re self-employed/own a company: consult your accountant.

Does my home-based business need insurance?

If your business is a hobby that makes a little bit of money, roughly $2,500 or less per year (this varies so be sure to check your policy), your homeowners insurance will allow you to add a hobby rider. If your business is bigger than that, you will need to get commercial insurance even if you’re working out of your home.