Protect Your Business: Be Sure Your At-Home Workers are Insured
Consider workers’ compensation, general liability, equipment, and customer property
Even before the COVID-19 pandemic, increasing numbers of employees were heading home to work, but now unprecedented numbers of people are working from home either full- or part-time.
If you have employees working at home, whether on a short-term or permanent basis, you need to make sure you’re covered from an insurance standpoint.
It’s possible your existing coverage is sufficient, but you might need to make some changes to be adequately protected.
Consider these issues and how to handle them:
Workers’ compensation. An employee who sustains an injury while working or during working hours, even though they are in their home, is protected by workers’ comp. Develop a system that clearly defines when the employee is considered to be “at work” and when he’s not. Be sure your employees understand the system and know how to promptly report any injuries.
General liability. This coverage primarily deals with the issue of people on the premises. Will your employees meet with customers or other business associates in their homes? If so, add their residences as additional locations to your business liability policy.
Equipment. If you have equipment or other business property (computers, electronics, tools, etc.) in the employee’s home, you need to make sure it’s listed on your business property policy, or that you are willing to accept the risk if it is not insured. You should also have a clear understanding with the employee of what you will and won’t be responsible for. For example, you may want to hold the telecommuting employee responsible for damage to equipment that resulted from negligence (such as if a child pours juice on a computer keyboard) but not for events beyond their control (such as a lightning strike or fire).
Customer property. If your employees ever take property belonging to customers to their homes, be sure your insurance agent knows and has provided for that coverage in your policy.
In most telecommuting situations, making sure your company is properly covered will either not affect your premiums at all, or at worst mean only a small increase. Talk to your insurance agent before you have a loss.
This article is an edited excerpt from Protecting Your Business: How to Keep Your Company Safe from External and Internal Risks and Threats
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