Home workers put firms at 'insurance risk'

As more and more businesses allow their employees to work from home, they increase their risk of losing money through insurance loopholes, experts warn.

With the growing popularity of broadband phone connections making it possible and easier for employees to mould their careers into work-at-home jobs, businesses are regularly handing laptops, telephony and other costly technology over to employees for home use.

Most people, however, have no home-workers insurance policy in place, leaving many small businesses in particular at risk of significant financial loss if these items become damaged or stolen.

"Without the right insurance policy, items like laptops, printers, fax, modems and other expensive technology are at risk," said Martin Nugent, a property insurance specialist for an online insurer.

"Handing these to staff so they can work at home might seem like a good idea, but too many bosses don't realise that most of their employees' home contents policies will not cover business equipment, money or any stock that's kept in the home," he said.

Nugent said that people who run their own businesses from home are also at risk, as they often do not discover their insurance policy does not cover their loss until they try to make a claim.