Insurance Considerations for Companies with Remote Employees
More employees are now working from home due to the COVID-19 pandemic. In some cases, this may be short term but in other cases it may be something that companies see as a long-term cost saving and employee retention tool. There are many benefits to having remote employees but there are also some potential liabilities from an insurance coverage perspective.
A consideration with remote work is network security and the increased risk for a data breach. This can be minimized by using an encrypted VPN, updating firewalls, antivirus software and using strong passwords. Unfortunately, even with taking these precautions there is still the increased potential for a data breach or cyberattack.
One coverage that can help protect your business if a network breach occurs is a cyber liability policy. A cyber liability policy would cover damages caused by a data breach or cyberattack. It can provide both first-party coverage for damages to your systems and third-party coverage in the event of a lawsuit if your client’s information or network is breached. Please also connect with your security administrator to ensure that all appropriate precautions are in place and updated regularly to reduce potential risk.
Are your employees using company laptops, printers, or other electronic equipment outside of the office? Another consideration with remote employees is the business-owned equipment they are using from home. There is a good possibility these items are not covered under your business property policy. With people working from home, you may want to consider an inland marine policy because your business property policy may only cover these items if they are on premise. The inland marine policy will cover business equipment that is on or off premise. It will also cover property in transit. It is the best way to provide coverage for mobile tools and equipment. An inland marine policy can be written on a replacement cost or actual cash value basis.
With more people working off premise or at home, there are a lot of new and often overlooked considerations that need to be reviewed. If you have questions about how remote work impacts your business insurance or would like a review of your current business insurance program, please give us a call!