The Impact of Remote Work on Business Insurance Needs and Coverage

The rising popularity and viability of remote work have transformed many work environments, making it necessary for businesses to revisit many parts of their operations and plans, including their insurance portfolios. As more employees work from home, companies must reassess their insurance policies to ensure they are adequately covered for the unique risks associated with remote work.

Impacts of Remote Work on Types of Business Insurance

Digital work environments may impact the needs and details of many parts of a business’s insurance portfolio, such as the following:

• Cybersecurity insurance—One of the most significant changes is the increased need for cybersecurity insurance. With employees accessing company networks from off-site locations, the risk of cyberattacks and data breaches has grown. Businesses must ensure their cybersecurity policies cover remote work scenarios, including potential vulnerabilities in home networks and personal devices.

• Workers’ compensation insurance—Remote work can blur the lines between personal and professional spaces, complicating workers’ compensation claims. Businesses may need to update their policies to address injuries that may occur in a home office setting. Clear guidelines and documentation are essential to determine whether an injury is work-related.

• General liability insurance—If an employee’s home office setup damages their property or others, the business could be held liable. Companies should review their general liability coverage to ensure that incidents occurring outside traditional work environments are included.

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

• Business interruption insurance—Traditionally, business interruption insurance can cover disruptions at physical office locations. However, remote work may introduce new potential interruptions, such as widespread internet outages that may keep off-site employees from conducting their duties. Businesses should consider policies that account for these scenarios to maintain operational continuity and limit financial ramifications.

We’re Here to Help

Contact Harlan Insurance in Alexandria, Louisiana, to learn how remote work and other workplace trends may impact a business’s coverage needs.

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.