What Business Insurance Do I Need for Remote Employees?

Far more people are working from home now than ever before. In fact, working remotely has become the new normal as of 2020. This arrangement has many benefits for both employers and workers. But it is important for companies that now have remote employees to update their business insurance policies.

Why Is It Critical to Update Your Business Insurance for Remote Employees?

Employees who work from home are likely to have homeowners insurance if they own their homes, or renters insurance if they rent. However, these types of policies are not designed to cover business needs. In fact, most homeowners policies exclude coverage for any business-related loss. 

The shift to remote employees has legal implications for a business. It creates a risk of exposure on several levels. Your existing policy may not cover new concerns inherent in the new situation. Risks associated with remote employees include cyber theft, employer liability for employee injuries, property damage to company-owned equipment, and commercial crimes.

What Types of Business Insurance Do You Need With Remote Workers?

Our experienced agent can help you design a business insurance package that provides the protection you need as an organization with remote employees. Types of coverage we recommend may include any or all of the following.

Cyber Liability Insurance

The risk of a cyberattack increases significantly with virtual employees working from home. Security measures should be put in place to help prevent a data breach, including an encrypted virtual private network (VPN) through which workers access company resources and applications, strong passwords, and updated antivirus firewall software.  

Third-party cyber liability insurance protects your company should a client or customer sue you over a data breach, even if the breach occurs remotely. It will cover your attorney fees, court costs, and the damages you are required to pay, up to the policy limits. First-party cyber liability insurance covers damages your company suffers from a data breach. This may include the costs of notifying affected clients and providing them with ongoing credit and fraud monitoring. If you are in the IT business, both types of cyber liability insurance may be bundled with your technical errors and omissions (E&O) insurance. 

Workers’ Compensation Insurance

Businesses with employees are required to carry workers’ comp insurance in most states. This insurance generally covers remote workers. The injured employee must prove that the injury or work-related illness occurred performing work duties during business hours.

General Liability Insurance

This coverage helps protect your organization from liability for bodily injury or property damage to a third party caused by your company or employees, including medical coverage. It also covers advertising injury, such as libel or slander. 

Commercial Property Insurance

This type of insurance is designed to protect the equipment, inventory, and assets of a business. If your company has remote workers, they are likely using laptops or other equipment belonging to the business but used offsite. If so, it is important to ensure your commercial property insurance policy covers company-owned equipment used by remote workers in their homes.