Due to COVID-19, companies have shifted their employees to work remotely either on a temporary basis or perhaps even on a permanent basis. A consequence of this strategy rarely considered is the insurance liabilities for both the employer and employee with work performed at home. Because most business general liability policies are written based on employees primarily working at a company's premises, you should have a J.P. Perry agent review your current coverage to see if the policy terms still meet your risk profile. Liability areas that could change with remote work include...
Cyber Insurance - With remote work on the Internet, the sharing of a company's proprietary information could be comprised. Exposure to cyber attacks could increase, especially since hackers have been more aggressive during the pandemic. Even the use of Zoom and Microsoft Teams platforms are vulnerable to breaches.
Employer's Liability Insurance - Employer's liability usually covers an employer for bodily injury claims by workers not covered by worker's compensation. Employers are generally responsible for providing a safe work environment, regardless of whether the employee works on-site or remotely. So the question that arises is how safe is a worker at their own home, particularly if the employer has no control of the home environment.
Property Insurance - This insurance typically covers commercial locations that a company owns or rents and property within those locations. Another question arises as to whether property, such as company laptops and even the software or company data, is covered in a remote location.
Workers Compensation - As a remote full time employee, this insurance benefit is extended to an employee while working from home. However, the coverage is for injuries that happen while the employee is working, not during non-work hours or non-work tasks.
Insurance Issues For Remote Workers
While an employer's business insurance provides for much of the coverage needed to conduct business at home, remote work can affect the employee's homeowners' insurance. It would be smart to have an insurance agent review the homeowners' policy to make sure there are no additional risks for the employee. Some of those areas to review include...
Personal Property - Some homeowners' policies will cover business property used at home, but there usually is a value limit. You would need to review your policy and determine if limits should be increased.
Liability Coverage For Visiting Clients Or Customers - If remote work requires the you to meet with clients or customers in your home, be aware that homeowners' insurance will not cover business-related injuries. However, your company's general liability insurance should cover it. But you need to check with your employer.
Residing In The Home 100% Of Time - Since the purpose of remote work is to be sheltered in your home from the virus, you may be in your home almost 100% of the time. This means more time at home with additional risks. This could be another factor affecting homeowners' rates.
Follow Up Action For Employers
If you have employees working from home, you need to get with your J.P. Perry agent to review all of your potential liabilities. You may find that you need to upgrade your business' general liability policy or you may need to consider management liability insurance. At. J.P. Perry, we can help you determine the direction you need to go.
Follow Up Action For Remote Workers
Depending on the nature of your professional activities, your risks may be too high to be covered under your existing homeowners' policy. You may need a comprehensive homeowners insurance policy or to add an umbrella policy. Again, your best strategy is to contact your J.P. Perry agent to review your coverage.