However, the rise in remote work comes with potential liability for some small businesses. From a security perspective, you need to know:

• What your business insurance covers when employees work remotely.
• How to make sure you’re protected against losses due to employee injuries, data breaches, business property damage, and more.

Let’s review some of the biggest risks of stay-at-home workers, and how to guard against them.

What if an employee is injured or becomes ill while working from home?

Most states require businesses with employees to carry workers’ compensation insurance. This policy covers lost wages and medical bills for employees who are injured or become ill on the job. It also covers the costs of a lawsuit if an injured worker sues your business.

Although workers comp laws vary by state, the coverage generally covers telecommuting. If a remote worker is injured at home and files a claim, they must prove that the incident occurred during business hours while performing work duties.

It is unlikely that a remote worker who contracts COVID-19 or any other serious illness could prove that they became ill because of their job. But If you have an illness-related claim, call your insurance agent to check workers comp laws in your geographic area and the terms of your policy.

These guidelines may not apply to all people who work from home for your business. Contractors (1099 employees) and freelancers are not eligible for benefits under your workers’ compensation policy.

How to protect remote workers from cyber attacks and data breaches

When employees work from home, the threat of cyber and data attacks looms large. A report from 2021 was found that 74% of organizations attribute recent cyber-attacks to remote work technology vulnerabilities.

To protect your business and remote employees from cyber attacks such as hacking, malware, or phishing, make sure employees:

• Access company applications and resources through an encrypted virtual private network (VPN).
• Updated antivirus and firewall software on their computers.
• Use strong passwords and change them regularly.
• Lock their computers and mobile devices when they take breaks.
• Know how to recognize and avoid phishing attempts and other scams.

You can also consider password managers or SSO (single sign-on) software across your company to authenticate users and reduce vulnerabilities.

How to minimize losses if your company is the victim of a cyber attack

If a malware attack or data breach occurs on a remote worker’s work computer, cyber insurance will cover the damages.

This insurance comes in two forms:

• First party cyber liability insurance covers damages from a data breach on your own systems. This includes the costs of notifying affected customers and paying for credit and fraud monitoring.

• Third party cyber liability insurance provides protection when a data breach compromises your clients’ systems and information. The coverage applies whether it happens at your place of business or remotely. If a client sues your business over a data breach, third-party cyber liability insurance will cover attorney fees, court costs, and any damages.

For IT businesses, most insurance providers will bundle both types of cyber liability policies with technology errors and omissions coverage.

Commercial property insurance may not cover remote business assets

If you have equipment, inventory, or other assets that you want to protect, getting commercial property insurance is essential. This coverage reimburses you for business property that is lost, damaged or stolen from your office.

But does this policy cover items as you and your employees transition to remote work? It depends.

Many remote workers are not included in working from home. Standard commercial property insurance generally covers property on the premises of your office or facility. But it can exclude or significantly reduce the provision for property away from the office.

Double check that your commercial property insurance covers business property used off-site by remote workers. An employee’s homeowner’s insurance policy will not usually pay to replace a business-owned laptop that was stolen or damaged outside of the office.

Make sure you have the right insurance for workers, data and equipment

As many continue to adjust and adjust to long-term remote work, it’s important to speak with your insurance agent to make sure you have the appropriate insurance to protect against the risks of telecommuting. Having to pay out of pocket for uncovered losses will only cause more financial hardship for your business in the future.