What are the insurance implications of working or running a small business from home?

Are you working or running a small business from home? Read on as RBS discusses the short-term insurance implications that you should consider. 

The Covid19 pandemic caused a shift in the conventional order of business. Many employees were forced to adopt remote working strategies due to lockdown. Now, three years later, many companies have allowed their employees to work fully remotely or have adopted a hybrid work system. The work from home approach has left many questions from both employees who work remotely and from those entrepreneurs who run their business from their homes.

Who bears the burden of risk when an employee works from home?

When an employee works from home using equipment owned by their employer, including laptops, smartphones or printers, the employer will be responsible for the insurance of those items. It is also the employers responsibility to notify the insurer of any changes to the risk address if employees are now working from home and not at the office.

While the employer carries the burden of risk, it’s important for employees to verify that their equipment is sufficiently insured. Employees should also review any workplace policies pertaining to the proper handling and storage of equipment during transit.

Using personal equipment for work: Is Personal Insurance sufficient?

If a person uses their personal equipment for work, these items can be insured as part of their Household Insurance. It is, however, advised that policyholders inform their insurers that they are using the equipment for both personal and business purposes. Entrepreneurs, however, who run small businesses from their home, could benefit from Business Insurance.

Business Insurance for small business owners who operate from their homes

It’s becoming more common for small businesses owners to operate out of their home or to use their homes as offices. While Household Insurance may provide some coverage, Business Insurance provides significantly more coverage.

For example, compared to a Personal Insurance policy, a Business Insurance policy provides coverage for work-related risks, such as third-party liability claims resulting from injuries sustained by a client or colleague while visiting the business owner’s home office.

Furthermore, businesses are more vulnerable to cyberattacks than ever. South Africa currently has the 6th highest rates of cybercrime in the world, with incidents ranging from data breaches, phishing scams to ransomware attacks. Small businesses owners who run their business from their home could also benefit substantially from adding a Cyber Insurance product to their Business Insurance policy.

If you’re uncertain which coverage is the best fit for your unique circumstances, don’t hesitate to reach out to your private broker. They can guide you through the available options and help you make an informed decision.

To get an updated risk assessment, get in touch with your private broker today.

About RBS

Risk Benefit Solutions, better known as RBS, originated as an entrepreneurial-focused services business in 1998 and today is one of the largest fully-fledged black owned insurance brokers in South Africa and a Level One BBBEE contributor. RBS’s growth has contributed to offering clients a unique approach to risk management by positioning our skilled resources as an extension of our client’s risk management team. The company covers a broad spectrum of services, including Insurance Broking, Risk Management, Commercial and Corporate Risk Advisors, Employee Benefit Consulting, Health Insurance, Wealth Management, Asset Management and Corporate Vehicle Hire Services.