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Important Insurance Coverages for Remote Workforces

November 5, 2020

For businesses of all sizes, working from home has become the norm in the COVID era. Many large companies such as American Express and Twitter extended their work-from-home options into 2021 or took the leap to make them permanent. A recent survey from 451 Research found two-thirds of companies expect work-from-home policies to continue long term.

But even after months of remote work, some businesses still may not have the proper coverages to mitigate risks associated with the new normal. Here is a breakdown:

Cyber Liability Coverage

With more employees relying on personal and home internet connections or using personal devices, cyber liability coverage is vital to shield your company against data breaches or cyberattacks. Moreover, businesses will also want to train employees on how to spot cyber risks and protect sensitive information while they work from home, such as handling phishing and best practices for device use.

Commercial Crime Coverage

Commercial crime insurance often overlaps with cyber insurance, providing coverage for losses related to funds transfer fraud or computer fraud made from the insured’s account through a third party. Keep in mind, though, commercial crime coverage may not always apply to electronic processes or systems in the same way that you would want. Some disputes have arisen when coverage is denied because the scam did not only involve a computer, or due to the insured’s use of online third-party payment systems. Decision makers should work with an insurance broker to ensure the coverage and contract language meet their needs.

Property Coverages or Floater Policy

This type of coverage provides additional protection against loss or damage for company-owned equipment, including laptops, printers or other tools employees may use at home. Without a proper policy, companies could face high replacement costs or claim denials in the event of malfunctioning or failed devices that were stored at an employee’s home.

General and Employers’ Liability Insurance

Companies with remote workforces should check that their definition of covered workers under their employers’ liability policy includes those whom the company or its additional insureds may find liable. Moreover, coverage territory should include anywhere employees may be located (which could extend beyond the typical U.S., Canada and Mexico).

Even as remote work has become a normal facet of American life, all remote businesses are different and may require unique coverage solutions as they navigate their needs in a quickly changing professional landscape. Consulting an experienced insurance broker to discuss potential changes and gaps in coverage can help you best protect your company in the years to come — no matter where your employees work.