Working from home: The remote worker’s guide to insurance

In the years after COVID-19 saw many people working from home for the first time, remote work has become more common that ever. Nonpartisan fact tank Pew Research Center reported in 2023 that one-third of workers who can work remotely, do.

Working from home simplifies some things and complicates others, including insurance needs and costs. Those who work from home even part-time are on the road less, which can mean cheaper car insurance. However, depending on the job, they may also need difference home insurance coverage or even be on their own for health insurance.

Whether you work remotely for a big company or run your own business from home, we’ve gathered what you need to know about work-from-home insurance.

How does working from home affect insurance?

If you work from home there are a number of ways your insurance needs might be affected. The type of coverage you need, and how much you pay, depend on what type of remote work you do. There are a few types of remote workers:

• You work from home and are a company employee. Remote workers who are employees of a company will usually have access to the same health insurance and other benefits as an employee who works in the office.
• You work from home as a contractor. As a contractor who is not an employee, you are likely on your own for all of your insurance needs.
• You run your own business from home. If you run a home-based business, your home insurance needs may differ, and you’re on your own for health insurance.

All remote workers have one thing in common: they are on the road less. Even if you work from home a few days a week, you commute less and may qualify for cheaper car insurance.

Can I get cheaper car insurance if I’m working from home?

There are several ways to get lower car insurance rates when you work from home. First, ensure your car insurance company knows you’re not commuting every day. If you never commute, you can have your car rated as pleasure use, which means lower rates.

Many car insurance companies also offer a low-mileage discount.

If you really drive very little, a pay-per-mile insurance policy might benefit you. Typically, you pay a base rate plus a cost per mile that you drive.

Something to consider: If you choose the pay-per-mile route, you agree to let your insurer plug a device into your onboard diagnostics system to track your mileage.

Should I cancel my car insurance if I’m not driving?

Even if you are not driving, there are laws in most states that require a registered card to be insured. If you are not driving at all, you may be able to put you car on an in-storage policy that covers comprehensive only (you’re covered for theft, vandalism, and weather, among other things that could damage your car). However, you may have to turn in your plates.

Without insurance, you can’t drive your car at all. And canceling it results in a coverage gap that can mean higher rates in the future. So it’s not usually wise to cancel.

Other ways to save on car insurance include bundling your policies, dropping optional coverages and shopping around. We recommend that you shop around at least once each renewal period, whether your driving situation has changed or not.

Home insurance for remote work

Home insurance is designed to cover personal needs; it’s not designed to cover work activities or business property.

In some cases, you may need to add an endorsement onto your home insurance policy to cover things like liability (if you have customers or clients visit your home) and property like computers, products and other things you use for work.

The coverage you need depends on your status as an employee or as self-employed.

Self-employed vs. full-time employees

One significant difference between full-time employees — remote or in-person – and self-employed is the insurance coverage you get.

Full-time employees have the benefit of their employer’s insurance coverage. Business items such as laptops, phones and other devices are covered. Even injuries are typically covered under workers compensation.

But if you work for yourself, you are responsible for this coverage. You will need coverage for your business property on and off your premises, business liability injuries, or lost revenue when a covered incident temporarily forces you to close your business. For these, you should take out a business insurance policy.

Many home insurance companies also offer a home business endorsement that provides some additional coverage.

Do I need to change my home insurance coverage if I’m working from home?

Homeowners insurance covers your personal property when used for personal reasons. Items used for business have limited coverage under home insurance.

Items used for business have special limits on your policy. If you have a lot of expensive business equipment, talk to your insurance company about how to increase your limits.

If you are a full-time employee working remotely, chances are you have more coverage through your employer. But to be safe, ask your human resources department what the coverages are, so there are no surprises.

If you have foot traffic or employees coming in and out of your home office, it’s probably best to take out a business policy. Much like if you are self-employed, as mentioned above, a good business policy includes business liability, business property and lost revenue.

Health insurance for people who work at home

If you are a full-time employee, you should have access to the same health insurance through your employer that in-office workers have.

For those who are self-employed, buying health insurance on the private market is generally a necessity. you can purchase health insurance through the Affordable Care Act’s health insurance marketplace, or shop around with private companies for coverage.

If you have a spouse who is employed full-time and has health insurance, you can generally be added to their health insurance policy.

Life insurance and working from home

There’s not necessarily a need to change life insurance policies just because you change where you do your work.

Again, if you are a full-time employee you may have some life insurance available through your employer. If not, you can shop around with private life insurance companies to purchase a policy.

Is there a work from home discount?

Though insurance companies have not yet begun to offer a specific work from home discount, James Surrey, founder and chief editor at Review Home Warranties says they should.

“Carriers should definitely offer a work from home discount. With more people working from home, early adopters of the policy can attract new customers and increase retention from existing clients eligible for such discounts. People are looking for ways to save more than ever. The bills are going to be among the first places they look.

With the home and auto insurance being typically the higher bills, this is one of the first areas they’ll explore for a possible discount.”

So, be on the lookout just in case your insurance provider starts offering a work from home discount, specifically on home and auto insurance.

The bottom line on remote work and insurance

If you’re new to remote work, your insurance needs might be changing. For most remote employees, the same insurance options are available as for those who work in the office.

However if are self-employed and working from home, your insurance needs may be more complex. to ensure you’re covered properly, sit down with an independent agent to get advice on what type of coverage you need and how to get it at the best price.

Pew Research Center. “About a third of U.S. workers who can work from home now do so all the time.” Accessed June 2024

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