Post-pandemic, the remote work model has become more and more popular, with more small businesses transitioning to have employees work from home. As reported in a Forbes article, 12.7% of full-time employees currently work from home, while 28.2% work a hybrid model.
Forbes also notes that 98% of workers have expressed that they want to work remotely at least some of the time, as this offers a flexibility, autonomy, and opportunity for work-life balance that is difficult to maintain when in an office full-time.
If your small business has transitioned or is thinking about transitioning to a remote work model, it is important to note that your Small Business Insurance needs may differ to those of office-based businesses. Learn more about the common risks to look out for, as well as the recommended policies that are sure to protect your valuable business and its employees.
Common risks associated with remotely working small businesses
Remote work can increase insurance exposures, bringing with it a new set of challenges. For this reason it is important to review your remote working policy with your insurance broker to ensure all potential risks are covered.
One such risk includes the fact that an employee’s personal Home Insurance policy is not made to protect against business exposures, but to cover against personal risks. You should ensure that coverage is acquired to protect against business risks and exposures so that the business is not held responsible should something happen to an employee in their home office. There is also an increased risk of unintentional violations of privacy laws, cyber incident exposure, injury liability, property damage or theft of items such as business equipment and more that should be considered.
Recommended Small Business Insurance policies to protect
1. Public Liability Insurance
Liability Insurance covers your business in the event that the business is found responsible for incidents that lead to harm of employees, third parties or property. In general, this policy should cover business activities wherever they may occur, but it is important your insurance program includes Public Liability cover for remote office locations as protected areas for insured events.
2. Cyber Insurance
In an increasingly digital world, this type of insurance is more and more crucial to protect your business in the event of a cyber attack or a data breach. Especially if you store sensitive customer information or conduct transactions online, a Cyber Insurance policy can help to mitigate the financial burden associated with cyber security breaches and cover any legal expenses.
3. Workers’ Compensation Insurance
No matter where work is conducted, any type of business with employees is required to carry an appropriate Workers’ Compensation policy. This is to ensure cover in the event that an employee is hurt while carrying out work-related duties.
It is recommended that you establish procedures in order to reduce likelihood of injuries while working remotely and prevent claims.
4. Personal Injury & Illness Insurance
It is important that you are able to protect your income in the event that you become injured or fall unwell and are found unable to work. This acts as a safety net of financial protection that ensures you can afford to recover if there is any business interruption, and is recommended for small businesses.
5. Contents Insurance
This policy is recommended to offer cover should business contents become damaged or lost. This should be sure to include protection for property off-premises.
6. General Property Insurance
To protect your portable professional equipment against damage or theft, a General Property policy is able to provide cover for property no matter where the damage or theft occurs as long as there is evidence of forcible entry.
7. Professional Indemnity Insurance
For home-based businesses that provide services or consultancy, this policy protects against claims of negligence, errors, or inadequate delivery of work that negatively impacts the client. To offer financial protection in the event that your business mistakenly provides a service that leads to legal challenges, this cover can ensure financial security.
8. Management Liability Insurance
This policy is important to provide cover in the event of mismanagement or malpractice by employees that may lead to financial loss. There is an onus on employers to ensure that all of its employees are provided a safe working environment, a fact that has been made increasingly difficult as working from home becomes increasingly common. Failure in this duty of care can have repercussions for employers. This is where the OH&S and Employment Practices Liability covers within a Management liability policy can provide additional protection.
Comprehensive Small Business Insurance cover with Atlantic Insurance
Atlantic Insurance has assisted small, medium and large businesses insure their assets and liabilities since the early 1980s. Contact us to discuss your specialised risk management and insurance options today.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.