CORONAVIRUS - INSURANCE - 15.04.2020

Remote working - the insurance implications

Work from home

Where possible people have been asked to work from home. This is easier said than done for some firms (and impossible for others, e.g. restaurants, builders, factories). And even if your business can accommodate some homeworking, this isn’t the time to be going out and buying everyone a new laptop and smartphone for what will hopefully be just a few months of disruption.

Equipment check. Assess who needs the equipment, like laptops, printers, phones, in order for the business to stay up and running. If you are short of some computers then you could:

• ask staff to use personal computers. However, you will need to check that these are secure, especially if they are accessing sensitive work or data
• look at renting a device for the period it is needed.

Are they covered?

The next question to ask is whether the equipment is covered by insurance. The answer depends on who owns it.

Personal computers. Insurance companies will often refuse to pay out if information, even that unrelated to your claim, has been omitted from the policy application form. This can leave you out of pocket if you make a claim and it’s rejected. Some companies offer home contents policies that include cover for personal items of equipment used, to a limited extent, for business. But be warned that this is not the case with all home insurance policies.

Specialist tech. What your insurance might not cover either is expensive audio-visual equipment or a photocopier that is used for work. Tip 1. If, after reading the policy wording, you’re in doubt, contact your insurance company to check the position about business use of personal items. Ask staff using their own equipment to do the same. Tip 2. If the device isn’t covered you could extend the cover. But before you sign up it’s worth checking out specialist “gadget cover”. This can sometimes be purchased monthly (for as little as £5) and cancelled at any time, so you just take it out for the period of homeworking. Make sure the insurer knows this is for business use and check whether cover extends outside the home too.

Business computers. There’s a difference between using the company’s equipment at home and using personal equipment on company business. A household policy won’t cover the loss or damage of assets owned by your company even where these are used at home.

Extension?

One option is to extend the home insurance to cover the additional equipment, but you can’t ask employees to foot the bill for this. What’s more, accidental damage to laptops is more or less a standard exclusion within home contents policies, even when limited to private use, and it will almost certainly not be provided for homeworking or when travelling. Tip. It’s one thing increasing your home insurance to cover business use of your computer etc., but where you’re using your company’s equipment at home it will probably be covered by the business insurance policy. Check the policy to be sure any equipment taken off the premises by you and staff is suitably covered both in the home and on the journey to and from.