The Hidden Risks of Remote Work: What Business Insurance Should Cover

The shift to remote work has brought numerous benefits, including increased flexibility and reduced overhead costs. However, it also introduces several hidden risks that businesses must address to financially protect their operations and employees. Understanding these risks and ensuring adequate insurance coverage is crucial for mitigating potential issues.

What Should Business Insurance Cover for Remote Workers?

The following are insurance considerations for employers with remote workers:

• Cyber liability insurance—One of the most significant risks of remote work is the increased vulnerability to cyberattacks. Employees working from home may use unsecured networks, making it easier for hackers to access sensitive company data. Businesses should invest in cyber liability insurance that can help financially cover data breaches and cyberattacks, including those originating from remote work environments.

• Workers’ compensation insurance—Remote work blurs the lines between personal and professional spaces, complicating workers’ compensation claims. Injuries that occur in a home office setting can be challenging to classify. Companies must update their workers’ compensation policies to address these scenarios, ensuring that remote employees are covered for work-related injuries.

• General liability insurance—If an employee’s home office setup causes damage to their property or others, the business could be held liable. General liability insurance should be reviewed and updated to include incidents that occur outside traditional office environments. This coverage is essential for financially protecting the company from potential lawsuits.

• Commercial property insurance—With employees using company equipment at home, businesses must ensure these assets are financially protected. Commercial property insurance should help cover damage or loss of items like laptops, monitors and other essential tools used by remote workers.

• Business interruption insurance—Traditional business interruption insurance typically covers disruptions at physical office locations. However, remote work introduces new potential interruptions, such as widespread internet outages. Businesses should consider policies that account for these scenarios to maintain operational continuity and limit financial losses.

Learn More

By addressing these risks and updating their insurance policies accordingly, businesses can better financially protect themselves and their employees in a remote work environment. Contact KJE Consultants, LLC today to discuss your business insurance portfolio.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.