There is a growing trend among companies to allow people the opportunity to work from home. Not just the business who are relatively small but even larger more established companies are embracing this trend because it brings many benefits. In this article, we establish if remote workers are eligible for business insurance.

Why do companies need remote workers

Research has shown that remote employees have fewer distractions around them because they are not in a workplace, being interrupted by other employees, and are most likely working alone at home. They face less stress because of flexible hours and less travelling with all the costs and stresses involved in that. Most importantly, companies do not have to pay extra money for equipment and premises and can invest in other places. As long as they have an internet connection to submit their work, an email to stay in touch, participate in team meetings and provide quality work, companies don’t mind where they are located.

Do home based workers need insurance?

Companies such as Singapore Insurance Empire provide insurance policies for small business owners if they have a home office. If you suffer losses as a result of working from home you will need cover to be reimbursed and protection against greater losses.
In some cases, if a business has employed remote staff, then they are legally bound to provide liability insurance for them against claims such as injury or illness while working for the company. Repetitive Strain Injury is the most common type of claim resulting from remote working, because of inadequate equipment being used. Similarly, in some cases people have to travel from their locations to meet other employees or clients, in which case the company is also responsible for ensuring public liability insurance cover is obtained.
In short, remote workers need business insurance just like any other worker, and if you are not  eligible for coverage through your employer, you will need to source it yourself.

Why is business insurance for remote workers important?

If either the company or the workers are home-based, then you need an insurance policy that covers the related risk factors. These might include injury, theft, or damage to property or equipment. Many people think they are covered with personal or home insurance, but in most cases, it is clearly mentioned in the contract that you are not protected against anything related to home-based businesses.
Usually, a BOP (Business Owner’s Policy) is the type of insurance that will need and can be customised according to the specific requirements of the worker and company.

Factors associated with Remote Workers Insurance Business Policy

There are three main types of protections that policies need to provide people and  businesses who are home-based:.

  • General Liability

This is the central portion of any business policy and it protects the owners from claims that relate to everyday processes. Workplace injury claims are the most common claims made and they include bodily injury, illness, pains caused by faulty equipment, working conditions, online harassment any many other issues.
It also covers any third-party claims that any issue was caused by something the employees working from home did or did not do. Medical care and health protection is also part of general liability, and you can also avoid the costs that result from damage caused to property through cover. Using commercial material that belongs to someone else, advertisement complaints and copyright issues are also covered. Therefore, if you employ remote workers at your company, it is essential that you go for general liability to avoid any possible future problems.

  • Property Insurance

If you are working on an online project, then the chances are the company has provided you with a computer or laptop, a device that has internet or any other kind of digital product to complete your task.
Property insurance covers all the damages related to equipment placed in your location. It also covers the furniture and products present which is an excellent choice because you get protection against any loss as long as you have included the property in insurance documents.
Ordinary home insurance will not cover you in the event that any property damaged is being used for work, in which case you will be left out of pocket.

  • Worker’s compensation

Even you are a company owner and you have people working in offices or at home, workers compensation is necessary. It is compensation related to any injury caused to a remote worker when they were performing their duties related to the company’s tasks. Therefore, it is crucial for businesses to apply for this type of cover because most of the settlement cases made are linked to worker’s compensation in the United States and the United Kingdom, where large numbers of remote workers are employed. Some other factors such as digital and information protection are also included.

General features of business insurance for remote workers

  • Specialist protection starting from a single item such as a desk to garden or room offices with proper infrastructure. It also protects if an employee is using the provided equipment for non-work related purposes.
  • Insurance cover for when you go out and visit an employee or conduct business activities on behalf of the company.
  • Such business policies mostly cover sole traders, partnerships, limited companies, and limited liability partnerships.
  • Usually, the cover is provided for all kinds of work irrespective of its nature. For example, if you are working on a computer or building something in your garage, the policy holds equal importance.
  • Coverage for all the equipment used by the company in the offices or homes such as computers, stocks, stationery, phones, furniture. There may also a specialist category for electronics depending on the insurance provider.
  • Protection against unpaid invoices and the money that’s still in transit
  • The insurance also provides financial security when you are doing business online or dealing with sensitive information from one worker to another. Information security is the biggest challenge for organisations which have people working from all over the world.

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