Insurance check for home workers

Working from home brings with it certain insurance implications that employees might not be aware of, Cornhill Direct has warned.

The insurance provider is urging home-based workers to ensure they have insurance in place for equipment they use at home in the course of their employment.

With seven in ten Britons suggesting they would prefer working from home – with 20 per cent even willing to take a pay cut in order to do so – it is important for workers to understand the full financial implication of homeworking.

Mark Bishop, spokesman for Cornhill Direct, explained that a standard home insurance policy may not cover equipment used for commercial purposes adequately.

This risk is compounded when such equipment is removed from home.

There is also the potential liability issue to consider if a customer or business associate visits their home and is injured, he added.

Those working from home could opt for a homeworker extension on a Cornhill Direct home contents insurance policy.

Such an extension includes cover of £10,000 for business contents and up to £10 million for employers' liability.

A survey by Axa Protection last year found that pregnant women and new mums generate an average £5,614 a year through home-based working.