More Canadians are blurring the lines between the office and home as the remote work revolution continues. Driven by the COVID-19 pandemic and forced lockdown to stop the spread of the virus, many organizations and employees enjoyed the perks of working from home.  

Though some companies are now welcoming employees back to the workplace, a growing number are embracing the idea of at-distance staff. It was a growing trend before COVID-19 and accelerated during the crisis. Organizations see improved productivity, a reduction in overhead costs, and a decrease in absent workers.  

For employees, well, who doesn’t want to work from the comfort of home? According to a survey by RATESDOTCA, 28% of Canadians will continue with remote work when lockdown measures ease, up from 9% before the pandemic. 

So, this is a win-win situation across the board. Or is it? One insurance question that keeps coming up when discussing the growth of remote work is when the home and office are paired, how does it affect home insurance? 

Home Insurance and Working from Home 

Home insurance is not compulsory in Canada, though it may be one of the best financial investments a homeowner can make. Moreover, many mortgage lenders may demand a borrower have home insurance before issuing a mortgage.  

With adequate coverage, a home is protected inside and out from accidents and disasters. Given the huge cost of home repairs, insurance is the best way to avoid being on the hook if the worst happens. However, home insurance is not tailored to the specific needs of home-based workers. As more people now travel to their couch for work, it can have a major effect on home insurance.  

There are some unique considerations for remote workers, such as whether they have clients visiting the property or will they be keeping employer-owned equipment at home? To avoid any nasty coverage surprises, contacting the insurance company that provides the policy is the best way to know what is covered or not.  

Does Home Insurance Cover Working from Home? 

For the most part, a standard home insurance policy will not cover the unique business risks involved in working at home. If equipment is damaged, a client is injured, or a data security breach occurs, a home insurance policy may not pick up the costs. That’s because home insurance is not designed to serve as a commercial or business policy. 

For workers taking on a home gig, revising their home insurance policy is crucial. Failure to do so could mean the insurance provider will decline to cover a claim if they do not know about the change in circumstances. Even where work may involve simply typing on a computer or answering calls, informing the insurer is advisable.  

Notably, some home insurance policies cover business equipment, usually up to $5,000. For many home-based workers, that will probably be enough, but for others more coverage will need to be bought. A home insurer may say whether the policy in place is enough to cover a client’s remote work situation or not. For some people, taking out a separate business insurance policy may be necessary.  

Does Employer Insurance Extend to Remote Workers? 

Allowing employees to work remotely has some obvious advantages for business owners. Streamlining on-premises costs, helping to keep a workforce productive, or spreading the pool of prospective talent are all perks of maintaining a remote staff. However, there are insurance risks involved. Whether an employer’s insurance will extend to their home staff depends on the employee’s circumstances.  

For independent contractors hired by a business, there will be no employer insurance. Independent contractors are business owners and must purchase their own business insurance.  

Remote workers in full-time positions are entitled to the same full benefits as an on-premises employee. Businesses are required to provide the correct tools for the employee to perform their role. Some of the commitments that extend to long-distance workers include: 

• Liability insurance for the work performed by the employee 
• Insurance for equipment owned by the business.  

A good rule is that any personal equipment will not fall under your home insurance policy, while employer-owned items will be covered by employer insurance. However, it is worth remembering that home insurance policies may not payout if a personal item was lost or stolen while being used for commercial purposes.