As businesses around the globe are embracing the benefits of having their team members work from home, there are certain implications that must be addressed in order to protect your company and interests.
For instance, having employees work remotely poses different risks that may not be covered under your current commercial insurance policy.
If your business has transitioned to remote work for your team members, it’s important to review your policy and have it updated for the protection of both your business and your employees.
Is a Business Liable for Individual Insurance Claims When a Team is Working Remotely?
Commercial insurance policies are generally written based on the premise that your employees work in an office. However, when it comes to remote work, many policy terms may no longer suit new risks.
Different insurance companies offer different policies based on a variety of risks, but there are some common issues that may arise when your team members work from home that may not be covered under a typical commercial insurance policy.
Although working remotely means that team members get to work from their own homes, their workspace and work time still falls under your business’s responsibility.
From injuries to cyberattacks, there are still occurrences in which your business is still liable for insurance claims made by a remote team member.
What Types of Commercial Insurance Do I Need for Remote Workers?
An expert insurance broker can tailor a commercial insurance package to meet your unique business needs. They can include a variety of coverage types, such as:
Cyber Liability Insurance
When your employees are working from home, the risk of a cyberattack increases significantly.
This is why it’s important to implement security measures for each team member to prevent data breaches. This can include using an encrypted virtual private network (VPN), strong passwords, and firewall software.
However, all the security measures in the world cannot guarantee 100% protection against a cyberattack. For this reason, you should consider adding cyber liability insurance to your current commercial insurance policy.
Third-party cyber liability insurance will cover attorney fees, courts costs, and damages should a client’s information become breached through your networks. First-party liability covers the damages suffered by your company due to a data breach.
Workers’ Compensation Insurance
For the most part, businesses with employees are required to carry workers’ compensation insurance which generally covers remote workers in the case of an injury.
Even though your team member is working from home, if they are injured or sick during working hours in a way related to the job, they can claim workers’ compensation as long as they can prove it is a work-related injury or illness.
General Liability Insurance
General liability insurance protects your business from liability in the event that a third party is injured, or their property damaged, due to the actions or inactions of your company or employees.
Be sure to speak with your insurance agent or broker to ensure that your general liability coverage extends to the workspaces of your team members working from home.
Commercial Property Insurance
Commercial property insurance protects your business’s equipment, inventory, and assets. This includes any equipment your employees are using at home such as phones and laptops.
Not only does this type of insurance cover damage caused by employees but it also protects your equipment against fire, theft, and water damage.
While commercial property insurance is typically restricted to your office premises, you can have the coverage extended to company-owned equipment used by remote workers in their homes.
Does Homeowner’s Insurance Cover My Employees?
Homeowner’s insurance reimburses the homeowner for damage to their home as well as covers for liability if third-party individuals are injured on the property.
Typically, homeowner’s insurance does not automatically cover business activity conducted in the home.
For this reason, it’s important to not place the onus of coverage on your employee. Their policy may not cover damage to equipment, injury to clients, or damage to commercial vehicles.
Protect Your Team and Business
In most cases, when you have a remote team of employees working from home, there is no need to commit to an entirely new insurance policy – you can simply make updates to ensure your business and team are safe.
However, because the widespread change to remote work is relatively new, there are no cookie-cutter policies to cover this situation.
Here at Capital Insurance Brokers, we are dedicated to finding the perfect insurance policy to match your unique business and individual needs.
We take the time to get to know our clients so that we can ensure you have the exact policies you need.
If you’re interested in learning more about commercial insurance options, don’t hesitate to get in touch today!
