Have you made the transition to a remote workforce?
Whether it's full or part-time, remote work is a trend with staying power. Before the pandemic hit, 4.7 million people were already working remotely. When the COVID-19 pandemic began to spread and lockdowns were enforced, 88% of business organizations mandated or encouraged employees to work from home.
The results seem to be paying off for both employers and employees, as evident by these undeniable remote work statistics:
- 18% of the workforce telecommute on a full-time basis
- 77% of telecommuters report being more productive
- 30% of telecommuters save upward of $5,000 a year
- Companies can save up to $11,000 annually for each half-time remote employee
- 99% of remote workers want to continue telecommuting in the future
Remote work is here to stay. But having a full- or part-time remote workforce comes with some new challenges for business owners. One of these challenges includes knowing how your insurance needs can change from a remote workforce.
How can you continue to protect your company against loss when your employees are working from home?
Insurance Considerations for a Remote Workforce
Cyber Liability Insurance
Having remote workers increases your companyâ€™s risk of cyberattacks. Remote employees may be working from an unsecured network, transporting their laptop to a local coffee shop, or even using their personal equipment to do work on, rather than company-issued equipment.
Cyber liability insurance is designed to protect your company from the financial and reputational losses that can occur in the event of a cyber breach. Cyber liability insurance typically provides:
- First-party coverage for damages arising from a data breach, including notifying affected clients and providing ongoing credit and fraud monitoring.
- Third-party coverage in the event a client or customer sues you over a data breach, including attorney fees and damages up to your policy limits.
Commercial Property Insurance
Laptops, tablets, monitors, keyboards, hard drives... equipping your employees to work remotely means a lot of your equipment is sent out into the world. So what happens when your employee has their company-issued laptop stolen or a rogue housepet knocks over a brand new 32" high-def computer monitor?
Commercial property insurance is designed to protect your company's physical property. Typically, that means covering physical assets inside your place of business, such as in an office or warehouse building. But your commercial property may also cover employee-assigned hardware used for remote working, too.
Talk to your insurance professional to find out if your current commercial property insurance covers equipment used for remote work, and, if not, what you need to do to insure those laptops against theft and damage once they've left the building.
Workers compensation insurance protects your employees in the event they are injured or become sick while performing their job duties. Your obligation to provide this coverage to employees doesn't end just because they're doing their job outside of your office walls.
Workers compensation covers costs related to your worker's job-related illness or injury, including:
- Medical bills
- Lost wages
- Disability benefits
Protect Your Remote Business Assets
Companies are adapting to the changing needs of a remote workforce. 99% of remote workers want to stay remote. They feel more productive, are saving commuting time, and they feel safer at home from a pandemic that doesn't seem to end. Protect your employees, business assets, and profit margin by updating your insurance policies to reflect the modern needs of a remote workforce.