With telecommuting becoming increasingly common, businesses are leveraging this flexibility to build top-performing teams by removing geographical limitations and expanding their talent pools. In 2016, 43% of workers telecommuted, and that number continues to rise. But what does this trend mean for your workers’ compensation coverage?
As more employees work from home, it’s essential to evaluate how this shift impacts your commercial insurance policies—especially workers’ compensation.
Workers’ Compensation Coverage & Remote Employees
Workers’ compensation coverage provides benefits to employees injured on the job, including medical care, lost wages, and permanent disability. Traditionally, businesses focused on improving workplace safety to minimize claims, but the rise of remote work introduces unique challenges.
Generally, workers’ compensation laws focus on business activities rather than the worker’s location. This means an employee injured while working from a home office may still file a claim, even though employers have limited control over the home environment.
3 Essential Tips for Mitigating Risk
- Remote Workplace Review
- Define the employee’s home office and discuss best practices for safety. Consider:
- Photo documentation of the workspace
- Safety checklists or workstation setup training
- Ergonomics, lighting, ventilation, and extension cord placement
- Smoke detectors and fire extinguisher availability
- Working Hours
While telecommuting offers flexibility, defining working hours is essential for managing workers’ compensation claims and ensuring compliance with labor laws. Options include:
- Establishing specific business hours
- Using software to track hours and break times
- Job Duties
Provide detailed job descriptions to clarify responsibilities and help prevent claims for non-work-related injuries. This is particularly important for remote employees juggling professional and personal tasks.
By creating a clear telecommuting policy and formalizing agreements, you can reduce risks and uncertainties associated with remote work arrangements.
Get Specific Answers to Your Workers’ Compensation Coverage Questions
At Swarts, Manning & Associates, we offer a unique perspective on commercial insurance and help identify the best coverage options for your business. Contact us today for a complimentary consultation at (833) 878-2820.
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