Like it or not, remote work is here to stay. While having employees work from home offers flexibility and potential cost savings, it also introduces risks that many business owners do not immediately recognize when it comes to business insurance coverage.
Reviewing your existing business insurance helps ensure that both your company and your employees are properly protected, no matter where the work is being done. As remote and hybrid work models become more common, insurance policies need to evolve alongside them. This guide explains the types of business insurance remote employees may require and answers common questions to help protect your business.
When employees work outside a traditional office, your risk profile changes. Home offices, personal vehicles, company-owned equipment, and increased cyber exposure all come into play. Everyday work activities can carry new liabilities when they happen away from your primary business location.
Many standard small business insurance policies were written with on-site operations in mind. Without updates, coverage gaps can appear when employees work remotely, especially if policies do not clearly address off-site work, equipment use, or data security.
Understanding these risks is the first step. The next is knowing which business insurance policies support a remote workforce.
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General liability insurance remains a foundational policy for businesses with remote employees. It helps protect your business if a third party claims bodily injury or property damage related to your operations.
For example, if a remote employee hosts a work-related meeting at home and a client or vendor is injured, general liability coverage may apply. Homeowners insurance often excludes business-related activities, which makes having proper business coverage essential.
Workers’ compensation insurance is typically required by law once you have employees, regardless of where they work. This coverage helps pay for medical expenses and lost wages if an employee is injured while performing job-related duties.
Remote work does not eliminate workplace injuries. Repetitive stress injuries, slips, falls, or other incidents in a home office may still qualify as workers’ compensation claims. Policies should clearly reflect that employees are working remotely.
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A Business Owners Policy combines general liability and commercial property insurance into one policy. If remote employees use company-owned equipment such as laptops, monitors, or phones, a BOP may help protect those assets.
Some policies limit coverages once equipment leaves the office, so it is important to confirm how off-site property is insured and whether coverage limits should be adjusted.
Remote work significantly increases cyber risk. Employees accessing business systems from home networks, shared Wi-Fi, or personal devices can expose your company to data breaches, ransomware, and cyberattacks.
Cyber liability insurance helps cover costs related to a data breach, including notification requirements, legal fees, and data recovery. For businesses with remote employees, cyber insurance is increasingly essential, regardless of size.
If remote employees use personal vehicles for work-related tasks such as client visits, deliveries, or errands, personal auto insurance may not provide sufficient coverage.
Commercial auto insurance or hired and non-owned auto coverage can help protect your business if an accident occurs while an employee is driving for work purposes.
Remote and hybrid work arrangements often raise new insurance questions for business owners. Below are answers to some of the most common concerns related to insurance for remote employees.
Do I need different insurance if my employees work from home?
Not always different policies but often adjusted coverage. Existing business insurance should be reviewed to ensure remote work is not excluded or limited.
Does homeowners insurance cover remote work injuries or equipment?
Generally no. Homeowners policies typically exclude business activities and company-owned property, which is why business insurance is critical.
Is cyber insurance really necessary for small businesses?
Yes. Small businesses are frequent targets of cyberattacks, and remote work increases exposure. Cyber liability insurance helps manage both financial and operational risks.
What if only some employees work remotely?
Even one remote employee can change your insurance needs. Coverage should reflect how and where work is actually performed.
Protecting Your Business in a Remote World
Remote work offers flexibility, but it also requires proactive risk management. The right business insurance coverage helps ensure that an injury, accident, or cyber incident does not become a major financial setback.
At Roehr Insurance, we help business owners navigate the changing risks of remote and hybrid workplaces. Whether your team is fully remote, partially remote, or a little bit of both, our team can review your current policies and recommend insurance solutions that fit your business.
