The debate between remote work and in-office work has been heating up over the past few years. With more businesses shifting to hybrid or fully remote models, many are asking a crucial question: How do insurance needs differ between remote and in-office employees? Many business owners with at-home businesses believe that they don’t need as much coverage as in-office businesses if any coverage at all! And while that may be partially correct in some cases, the risk of being underinsured is pretty high. So, let’s settle the debate once and for all!
What’s the Difference in Risk?
Remote Work: When employees are working remotely, the types of risks you need to consider are vastly different. For starters, the likelihood of workplace injuries like slips and falls decreases when they’re not navigating office corridors. However, other risks take the spotlight — think cyber security breaches, misuse of company property, or even liability for employees working from a rented space.
If you have a lot of employees working from home, your insurance should address risks like:
Cyber Security Coverage: If an employee’s home Wi-Fi is hacked, sensitive company information could be compromised.
Equipment Coverage: Laptops, tablets, and monitors used at home should be covered in case of damage or theft.
General Liability: What if an employee invites a client to their home office and an accident occurs? It’s rare, but it can happen!
In-Office Work: In contrast, having employees work on-site means you need to focus more on traditional office-related coverage, such as:
Workers’ Compensation: If someone slips on a freshly mopped floor or sustains an injury in the office kitchen, you’ll need coverage to handle those claims.
Property Insurance: This covers office equipment, furniture, and the space itself in case of fire, theft, or other damage.
General Liability Insurance: General liability protects your business from third-party claims like bodily injury or property damage that might occur on your premises. For example, if a client trips in the lobby, your insurance covers their medical costs.
Are Remote Workers Covered Under Standard Business Insurance?
One of the big questions businesses ask is whether traditional business insurance policies extend to remote employees. The answer is: it depends! Standard policies may not cover equipment and activities that take place outside the designated business premises. So, if your team is working remotely, it’s a good idea to review your coverage with your insurance provider and explore add-ons or separate policies tailored to remote work needs.
Hybrid Work: A Happy Medium, or Twice the Headache?
Hybrid work models mean employees split time between home and the office, which can complicate things a bit. You’ll need to ensure that both environments are adequately covered. This might include expanding your existing business policy to protect equipment at multiple locations or adding extra liability coverage for home-based operations.
So, What’s the Verdict?
Whether you’re running a fully remote, in-office, or hybrid team, understanding the unique insurance needs of each environment is crucial. Regularly reviewing and updating your policies will ensure you’re not caught off guard. And remember, just like choosing between office- and home-brewed coffee, there’s no one-size-fits-all answer — only the best option for your unique setup!
Need help finding the right coverage? We can help with that! Reach out to Avalue Insurance today, and let us help you find a solution that works best for you and your business!
