Remote Workers: Why Business Insurance is Necessary

There’s no doubt that one of today’s hottest work trends is offering employees the ability to work remotely. Companies of all sizes in a variety of different industries are allowing workers the perk of telecommuting – working from their home office, a coffee shop or even while waiting for an appointment in a doctor’s office. As long as workers have internet access, they’re able to complete their daily tasks, answer email, call in and contribute to meetings, staying productive and collaborative with their team anywhere in the world.

In fact, Forbes.com states there are a variety of benefits remote workers enjoy that can improve a business’s bottom line. Employees are more efficient as they encounter far less workplace distractions than in an office setting. They tend to experience less stress, as they don’t need to commute in heavy rush hour traffic, and those reduced stress levels lead to a higher morale. As an additional benefit, companies incur less overhead and operating costs to keep business running smoothly.

Remote Workers: Why Business Insurance is Necessary

If your client’s small business and/or employees are home-based, the short answer is yes; the company needs insurance above and beyond a standard homeowners policy, which is not designed to cover the specific needs of a business. As a matter of fact, many homeowners’ policies include exceptions for home-based businesses and will not cover any type of losses related to the business.

A businessowners policy (BOP) is a type of commercial insurance that combines coverages that might be purchased separately. While each policy can be customized to meet the individual needs of the business, the standard coverage includes:

General Liability

This portion of the policy covers a business from a variety of claims, including bodily injury or property damage third parties experience as a result of something the company or employees did or failed to do. It provides coverage for medical care for any injuries and damage to the property. Additionally, general liability can also cover injury caused by advertising, like libel or copyright infringement. Even if employees work remotely, general liability is recommended for those unforeseen incidents that harm individuals or business property.

Property Insurance

This doesn’t just cover commercial buildings the company rents or owns, but also the business equipment employees use while working remotely, like company-owned computers or tools. Property insurance covers any accidental cause of loss unless the loss is specifically excluded within the policy language.

Additional Small Business Insurance Considerations for Remote Workers

If the company’s employees are all remote workers, the business will need general liability coverage at the very least. Additionally, because even a BOP policy has certain coverage exclusions, other coverage may be necessary, like workers’ compensation. Workers’ comp is required whether employees are physically present in the office or working from their homes. If an employee is hurt at home during business hours, and the injury is related to his or her job duties, that injury is generally compensable. Keep in mind that each state also has its own workers’ compensation laws and programs, so visit the U.S. Department of Labor’s State Workers’ Compensation Officials website to learn more.