Remote work has become more common in the U.S. by the day. More and more home businesses are starting up, and more companies are allowing their employees to work, at least partially, at home. While those starting up home businesses have their own set of insurance plans to protect their businesses, employers also need special types of commercial insurance to cover their at-home employees.
What types of commercial insurance plans do employers need to purchase for their at-home employees? These types of coverage can protect your business and its employees.
Cyber Liability Insurance
Cyber liability insurance protects your business against data breaches. If your business stores any type of sensitive data regarding your customers, this is a must-have type of coverage, especially if you have employees who handle this information while working from home. Cyber liability insurance will protect your business in the event that one of your systems is breached and this data is stolen or compromised. Learn more about this type of business insurance here.
Commercial Property Insurance
Commercial property insurance not only protects property at brick-and-mortar stores and office spaces. It can also cover the devices and equipment your remote employees use at home. This can include computers and electronic devices, office equipment and peripherals, tools, and other things owned by the business and used by employees remotely.
Be sure to keep an updated list of tools and equipment used by employees. It’s important to differentiate what is owned by the business and what is the personal property of the employees, as that can dictate what is and is not covered by the insurance plan your business owns.
Worker’s Compensation Insurance
If you have a worker’s compensation plan for your employees, the policy can extend to remote workers, as well. If you are just starting a business and only have employees working remotely, be sure to include this type of coverage for your business. Worker’s compensation protects employees, both working in the office and remotely, should they become injured while performing the duties they are assigned as an employee of your business.
General Liability and Errors and Omissions Insurance
Even remote employees need to be covered under your general liability and errors and omissions insurance. General liability insurance protects your employees and business from advertising injury as well as against libel and slander.
Errors and omissions insurance specifically pertains to allegations of an error or mistake and allegations of omissions or negligence. You will still need this type of insurance if you own a business in a service-based industry, especially one where your employees handle high-value accounts that could result in losses for your customers. This also applies if your employees work remotely.
Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.