Do I Need Commercial Property Insurance if I Work From Home?
There is a revolution underway in workplaces all around the world. From the most cutting-edge technology firms to the oldest and most storied financial institutions, employees are rejecting the endless commutes that add unpaid hours to the 9-5 grind, and they are working from home.
As a business owner, you understand better than anyone else the unique power that comes with working from home. Entrepreneurs like you basically invented it; now is the time you perfect it.
At Archway Insurance, we want to help you grow your business from home—with confidence. Our commercial property insurance plans protect your workplace, even if it’s your garage.
In this article, we will explain why you need commercial property insurance for your business’ work-from-home setup.
First, though, in order to better understand why you need to implement long-term work-from-home plans, we will examine the new world of remote work and how it will affect you.
The WFH Revolution
Working from home (WFH) is not as solitary an activity as it may seem. On the contrary, the very act of doing your job from the comforts of your couch makes you a participant in an industrial revolution of unprecedented scope and scale.
In 2016, just 4% of workers in Canada reported working from home for the majority of their paid hours. That number shot up to 40% in April 2020, before levelling out at 23% in August 2021. It is estimated that four million Canadians continue to work from home.
However, astonishing figures like these paint an incomplete picture of the WFH reality. When researchers at Statistics Canada examined the phenomenon more closely, they found that the likelihood of anyone working from home differs in significant ways depending on the industry in which they are employed. For example, while just 5% of workers in accommodation and food services reported working from home, that number exploded to 70% among workers in the finance and insurance industries, in addition to the professional, scientific, and technical services sectors.
How the WFH Revolution Will Affect You
Whether you are currently working from home, or are envying those who do, your life will continue to be affected by this profound shift in work culture. Though companies are signalling their intentions of moving employees back to offices, Canadians are making it known they might not follow—and technological trends might strengthen their hand in negotiations.
Over the course of 2021, major corporations including Apple signalled to their employees and their shareholders that they would be returning their workforce to workplaces before the end of the year. The global omicron variant outbreak put a swift end to those plans. They may have been short-lived in any case if the mood of average Canadians is any indication.
According to Darrell Bricker, Ipsos’ CEO of Public Affairs, Canadians have been consistent in their desire to continue working from home, even if their reasons have changed. Though they initially preferred staying housebound out of concern for their personal safety, Canadians are reporting higher levels of productivity and job satisfaction. In fact, Canadians have so enjoyed their time working from home that 35% of respondents in a recent Leger poll indicated they would quit their job if they were forced to move back to the office.
Technological advancements may yet interact with public opinion to ensure that the big move back to offices may never come. Recent studies have found that “roughly 40% of Canadian jobs can be done from home,” with that number expected to increase as new technologies continue to disrupt traditional office culture.
Put another way, out with suits and in with sweatpants. More and more businesses just like yours are giving up the office, perhaps permanently, in favour of a WFH.
Is your home office WFH-ready?
If your living room is going to be your new workplace, then you need to start treating it like one. You need to evaluate potential liabilities associated with the site and find ways to offset them. In other words, you need the right insurance policy.
You wouldn’t rent out office space without insurance. Why should your home office space be any different?
Typical home insurance policies help you protect your living space with coverages for:
- Damages and vandalism affecting the interior and exterior of the property.
- Theft, fire, flooding, and other damages that affect household possessions such as your electronics, furniture, and jewellery.
- Accidents inside the home that harm you or someone else.
However, home insurance policies are not made with home-based businesses in mind. In addition to your typical home insurance policy, you will need commercial property insurance.
These plans often include the following:
- General liability coverage, safeguarding you from damages arising from harm caused by your home-based business.
- Damage to business property coverage, which protects business premises, equipment, inventory, and other assets that are crucial to the ongoing management of your company.
- Business interruption coverage, which ensures the continuity of your business income in case of damages to any of the aforementioned assets that would prevent you from continuing your business as usual.
Commercial property insurance is a vital aspect of any successful home-based business. Don’t leave your business unprotected.
Call Archway Insurance Now
We can find a commercial property insurance plan that cover all the typical features listed above and more. Enhanced coverage includes:
- Equipment breakdown, which provides protection for a variety of tools, devices, and other assets that are essential to your business’ functioning.
- Earthquake and flood damage, which protects business-related buildings and equipment, and ensures coverage for repairs.
- Sewer backup protection, when water damage prevents you from doing your job your way.
Along with this robust coverage, we offer a dedicated and professional brokerage team who are committed to making sure you get the best possible insurance advice. Whether we are explaining the difference between All Risks and Named Perils, or helping you decide if your mobile property should be insured, our insurance brokers will protect your business so you can focus on building it.