Workers Comp For Remote Workers

December 7, 2020
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Business Insurance Insights

The new “work-from-home economy” presents employers with many challenges, not the least of which is realigning insurance programs to cover gaps created by remote workers.

The outbreak of COVID-19 pushed a record high, 51 percent, of American workers to “Always” working remotely in April of 2020 according to an October Gallup poll.

And while since April that percentage has dropped to 31 percent, it’s safe to assume remote work will be a major factor in the American workplace moving forward.

In fact, two-thirds of current remote workers would prefer never to return to the office.

Watch this short video on worker's compensation insurance for remote workers or keep reading…

Workers Comp for Remote Workers

While remote workers do shift insurance exposures from the office to the home, it doesn’t mean they’re less likely to be injured. In fact, there is a case that the opposite is true.

Remote workers by moving away from the office are now operating in an uncontrolled environment. This can create hazards business owners and leadership is unaware of existing.

Additionally, there is more opportunity to work with no commute and the office always being one room away.

It’s not a stretch to see assume psychological-related claims associated with isolation and repetitive activity-related claims due to overwork will be on the rise.

Your worker's compensation insurance policy now needs to be managed in a way that addresses these concerns.

Here are there things to consider:

1) Add Employee Home Address to Policy

If an employee becomes fully remote, it may be necessary to add their home address as a location to your worker's comp policy.

Thus far, this is only necessary if your worker's compensation carrier requires it. However, to avoid issues when there is a claim, it’s a prudent step whether required or not.

2) Add New States to Policy

Remote work culture is allowing employees to move farther away from the office. Here in New York, many technology and professional businesses have remote workers moving permanently to warmer climates such as Floridan and the Carolinas.

In these instances, the new home states for these employees must be added to your worker's comp policy in order for there to be coverage.

This is an easily overlooked detail but it’s incredibly important.

3) Implement Remote Outreach Programs

Managing a worker's compensation program is as much about risk management it is setting up the policy.

This means management needs to put company-wide programs and procedures in place to make sure their team is healthy and safe even though they’re not in the office.

Isolation and a lack of oversight in daily activity can lead to unforeseen accidents, injuries and illnesses that will need to be picked up by worker’s compensation.

Putting these types of programs in place is something we can help with here at Rogue Risk.

The Rub

The office is going remote and whether it’s full or part-time, for now, or for forever, employers cannot assume that remote work is safer and let their guard down.

Unfortunately, the impact of remote work has yet to play out in the insurance world.

This is where we come in at Rogue Risk.

We’re worker's compensation specialists and can help you navigate the market and workforce changes to make sure you have the coverage without being overcharged.

You can start with a free Workers Comp Experience Mod Audit, or…