How to Adjust Your Insurance Coverage for Remote Employees

After the global pandemic, more people are working remotely than ever before. While working from home during the lockdown, many employees became accustomed to the benefits, including greater work-life balance. Managers also became aware of the advantages to companies of having employees work remotely. Moving forward, it is critical to update business insurance coverage to suit the new operating basis.

Why Should Business Insurance Be Updated With Remote Workers?

Homeowners and renters insurance are not designed to cover businesses. Most policies exclude coverage for any business-related losses. When employees are working from home, it creates exposure to risk in various ways, including:

• Damage to company-owned property, such as computer equipment
• Cyber theft and data breaches
• Commercial crimes
• Company liability for employee injuries

What Types of Insurance Does a Business With Remote Workers Need?

Employers need certain types of commercial insurance to cover employees working from home. These include:

• Commercial property insurance: In addition to a building or office space, commercial property insurance covers equipment and devices used at home by remote workers. This may include computers, office furniture and equipment, electronic devices, and other company-owned property used by employees working remotely.
• Cyber liability insurance: The potential for cybercrime is one of the greatest risks of having remote workers. Cyber liability insurance protects against data breaches. It is essential when employees who deal with sensitive information are working from home. Third-party cyber liability insurance can protect your company in case a client sues over a data breach that occurs remotely. It covers attorney fees, court costs, and damages. First-party cyber liability insurance covers damages your business suffers from a data breach. This may include the costs of notifying affected customers and providing them with credit monitoring.
• Workers’ compensation insurance: Most employers are required to carry this coverage under state laws. Workers’ comp extends to remote workers as well as on-site workers. It protects employees working from home in case they are injured while performing their jobs. To be eligible for workers’ compensation benefits, employees working from home must prove that the injury occurred during business hours in the course of performing work duties.
• General liability insurance: This insurance includes medical coverage. It can help protect your business from liability for bodily injury or property damage to third parties caused by your employees or your company. It also covers advertising injuries, such as libel and slander.
• Errors and omissions (E&O) insurance: This coverage applies when allegations of errors, omissions, or negligence are made. If you are in a service-based industry, you may need E&O insurance for your remote employees. It is common coverage for real estate agents, marketing consultants, graphic designers, accountants, advertising agencies, and other businesses that provide services.

If having remote workers is a new development for your company, your business insurance coverage may need updating. Our friendly agent will be happy to discuss the risks to your business with employees working from home and help you find the right coverage at the best available rates.