What Insurance Does Your Business Need for Remote Employees?

Topics: Business Owner's Policy Workers' Compensation Small Business

Summary: The fact that your team works at home may make it challenging to understand what insurance coverage you need. The truth is that small businesses need essentially the same insurance coverage even if the team works remotely.

When some or all of your team works remotely, your organization gets a lot of benefits. Employees are often more productive, you have access to talent from all over the country, and the company saves money on office overhead.

However, the fact that your team works at home may make it challenging to understand what insurance coverage you need. Can you skip business owners’ insurance if all the work takes place in employees’ home offices? Or do you need the same coverage you had with an in-office team?

The truth is that small businesses need essentially the same insurance coverage even if the team works remotely. Understanding the benefits of each type of insurance can help you choose the right coverage for your organization.

Here’s what you need to know about each type of business insurance.

The Business Owner’s Policy (BOP)

Every company should have a business owner’s policy, even if the team is working from home. This insurance helps protect both the organization’s business property and any liability the company might incur.

What is a BOP?

A BOP has two main parts. First, there’s protection for the property the company owns. This includes buildings, business equipment, computers, and more. Secondly, there’s liability coverage in case someone is injured on company property or in case a product or service causes harm to a customer.
Some business owner’s policies also include business interruption insurance to help protect the company’s revenue if a fire, theft, or other event affects its ability to sell products or services to customers.

Why a Remote Company Needs a BOP

Even though your employees work from home, the company still has property that needs to be protected. Most homeowner’s policies specifically exclude property used for work or business purposes, so the business owner’s policy is necessary to provide protection if something happens to office equipment.
Also, your company can still incur liability claims, no matter where employees work. If a third party, such as a customer, experiences harm because of something your company or employees did or failed to do, they can sue you. The BOP will help defend the organization and can help pay a judgment if you’re found liable.


Workers’ Compensation Coverage

When you have employees, you’re required to carry workers' compensation insurance in almost every state. Not only is it required, it’s the right thing to do.

What is Workers’ Compensation?

Workers’ compensation provides medical benefits and lost wages to employees who are injured on the job. Employees can be injured even in office jobs, from tripping and falling to struggling with repetitive strain injuries.

Why Does a Company With Remote Workers Need Workers’ Compensation?

The fact that your employees work in a home office doesn’t change the fact that they can get injured in the course of their work. It’s important to have appropriate coverage to compensate them for those injuries until they can return to work. Otherwise, the company may have to pay those costs out-of-pocket.
As mentioned earlier, workers’ compensation coverage is also legally required in almost every state.

Cyber Insurance

A remote work team means your company is even more reliant on its computer network than usual. It’s essential to have cyber insurance to protect the company from losses that can happen if there’s a security breach.

What is Cyber Insurance?

Cyber insurance helps your organization recover from and cover costs related to a cyber attack. Unfortunately, thieves often target small businesses, and many organizations report suffering multiple attacks per year.
A computer network breach can expose your customers’ data, put malicious software into your company’s systems, or disrupt your company’s operations entirely. Casino corporation MGM recently went through a cyber attack that is expected to cost the company $100 million.

Why Remote Companies Need Cyber Insurance

Any company should have cyber insurance to protect itself from damages caused by cyber thieves. However, a company with remote employees especially needs this coverage.
When your team works from home or another location, you’re relying on home networks or public networks as well as your in-house computer network. It’s essential for every team member to follow cyber security rules closely, but unfortunately, people can and will make mistakes.
That means your data is more likely to be at risk with remote employees, making cyber insurance imperative.

Does Your Small Business Have These Essential Coverages?

Protecting your small business is crucial because a significant setback has a much bigger impact than it would at a larger company. There are many benefits to having a remote team, but you still need high-quality business insurance.
Our team is ready to help you get the customized insurance coverage your organization needs. Contact us for a quote today!

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