Every year, it becomes more common for businesses – both large and small – to allow their employees to telecommute. In fact, many leverage this type of flexibility when building top-performing teams because it removes geographical limitations and maximizes the talent pool. According to Gallup’s 2017 State of the American Workforce report, 43% of workers were telecommuting in 2016 – and that statistic is expected to continually rise. So, what does that do to your workers’ compensation coverage?
As more of the workforce conducts business from their home offices, it’s essential to consider the impact this new model has on your all of your commercial insurance policies – especially your workers’ compensation coverage.
Workers’ Compensation Coverage & Remote Employees
Workers’ compensation coverage pays benefits to employees who are injured on the job, including medical care, lost wages, and permanent disability. For years, employers focused on improving workplace safety – with the goal of minimizing workers’ compensation claims. So, what happens now that more employees are working from home?
Each state has its own legal nuances when it comes to workers’ compensation, but generally speaking, the laws are defined by the business activities and not the worker’s location. This means that an employee who is injured while performing his or her job from a home office will likely be able to make a workers’ compensation claim, regardless of the employers’ ability to create a safe and controlled environment.
3 Essential Tips for Mitigating Risk
As with many things, lowering the risk of a workers’ compensation claim starts with effective planning. In other words, it’s time to formalize those casual arrangements and create a telecommuting policy. Here are some tips designed to help you start thinking proactively about policies and best practices for your remote workforce.
Remote Workplace Review – Discuss and document the area that will be defined as the employee’s home office. Despite having little control over that space, you shouldn’t be completely in the dark. Consider best practices, such as photo documentation, safety check-list reviews, and/or workstation set-up trainings. Talk about topics such as: ergonomics; lighting and ventilation; proper use and placement of extension cords; and smoke detectors and fire extinguishers.
Working Hours – While flexibility is one of the most appreciated benefits of a telecommuting arrangement, it’s important to define “working hours” in one way or another. This is important in the event of a workers’ compensation claim, but it’s also essential to ensure you’re in compliance with the Fair Labor Standards Act and other state and federal employment regulations. Consider defining specific business hours for your remote employees or explore software options for tracking hours and break times.
Job Duties – Comprehensive descriptions of job-related duties and responsibilities are key for helping to prevent claims on injuries that may arise from non-work-related activities. This is especially important for remote employees who have their professional and personal lives intertwined during the day.
By having a clear telecommuting policy and ensuring remote employee agreements are in place, you’ll be able to mitigate the risk and uncertainty associated with your off-site staff.
Get Specific Answers to Your Workers’ Compensation Coverage Questions
At Swarts, Manning & Associates, we provide a unique perspective on all of your commercial coverage options, and we help to determine which carrier best fits your business needs. We strive to find you the broadest coverage at the best available rate. Give us a call to get started: (833) 878-2820.
Each week, Swarts, Manning & Associates covers relevant topics for your business. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
