diff --git a/edgelet/hsm-sys/azure-iot-hsm-c/src/edge_hsm_client_store.c b/edgelet/hsm-sys/azure-iot-hsm-c/src/edge_hsm_client_store.c
index 37c27f1f93b..feb42b53f09 100644
--- a/edgelet/hsm-sys/azure-iot-hsm-c/src/edge_hsm_client_store.c
+++ b/edgelet/hsm-sys/azure-iot-hsm-c/src/edge_hsm_client_store.c
@@ -2676,6 +2676,12 @@ static int edge_hsm_client_store_insert_encryption_key
         LOG_DEBUG("HSM store already has encryption key set %s", key_name);
         result = 0;
     }
+    else if ((load_encryption_key_from_file(g_crypto_store, key_name) == 0) &&
+                key_exists((CRYPTO_STORE*)handle, HSM_KEY_ENCRYPTION, key_name))
+    {
+        LOG_DEBUG("HSM store already has encryption key set %s", key_name);
+        result = 0;
+    }
     else
     {
         size_t key_size = 0;