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Commercial Insurance Coverage for Remote and Hybrid Workers

Wells Insurance
remote and hybrid commercial insurance

Adapting insurance coverage for remote and hybrid work is increasingly important as work patterns change, bringing unique liability and property exposures for both employers and employees.

The way we work has changed dramatically in the past few years. More businesses are embracing remote or hybrid setups, which creates flexibility and new opportunities for employees. But with these shifts come new insurance challenges that many business owners may not be aware of.

From liability exposures to cyber risks, employers need to make sure their insurance policies are keeping pace with evolving workplace realities. At Wells Insurance, we help businesses navigate these changes and protect against the risks that remote and hybrid work can bring.

Liability Exposures in Remote and Hybrid Setups

Workers’ Compensation
Remote employees are typically covered by workers’ compensation if they are injured while performing work duties at home. However, proving that an injury occurred during work hours in a home environment can be more complicated. Employers should review policies to ensure coverage extends to home offices and document safety expectations for remote setups.

General Liability
Working from home introduces new risks, such as employees accidentally damaging client property offsite or sending communications that result in libel or discrimination claims. Standard general liability policies may not fully address these exposures, making it important to tailor coverage for remote work risks.

Employment Practices Liability (EPLI)
Hybrid work environments can blur HR boundaries, which may increase claims related to wrongful termination, harassment, or discrimination. EPLI coverage helps protect businesses from these costly legal risks.

Property Insurance Challenges

Commercial Property Coverage
Business assets like laptops, monitors, and other equipment often leave the main office with employees. Traditional commercial property policies may exclude or limit coverage for equipment used offsite. It is essential to update your policy so assets are protected wherever they are being used.

Homeowner’s or Renter’s Insurance
Employees working from home should confirm whether their  personal insurance covers business-related property or activities. In many cases, standard homeowner’s or renter’s policies exclude professional use. Clear communication between employers and employees can help identify these gaps.

Vacancy and Valuation
Companies reducing their physical office footprint may face risks tied to increased vacancy, property value fluctuations, and liability gaps. Property owners should review their policies to ensure they reflect these changes.

Evolving Cyber Risks and Coverage Needs

With more employees working remotely, cyber threats are on the rise. Unsecured home networks, personal devices, and less formal IT oversight increase the likelihood of breaches and attacks.

Cyber Liability Insurance is more important than ever. A strong policy can help cover the costs of data breaches, ransomware, and other cyberattacks. Businesses should also encourage employees to follow best practices such as using VPNs, enabling multi-factor authentication, and creating secure passwords.

For more insights, see our blog: The Importance of Cyber Insurance for Small Businesses.

Actionable Steps for Businesses

To stay ahead of these evolving risks, businesses should:

  • Audit all insurance policies to confirm coverage for offsite employees and equipment

  • Develop clear remote work and reporting policies for safety and liability documentation

  • Encourage employees to review personal home insurance policies for potential gaps

  • Enhance cyber coverage to address the unique risks of remote and hybrid environments

Partnering with Wells Insurance

The workplace continues to evolve, and so should your insurance strategy. By reviewing coverage, addressing cyber risks, and preparing for the realities of remote work, your business can stay protected while embracing flexibility for your employees.

Ready to review your policies and strengthen your coverage? Learn more on our Commercial Insurance page or  contact the Wells Insurance team today to start the conversation.