Is your business prepared for the risk that remote work brings?

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For many, remote work used to feel like an untouchable reality reserved for entrepreneurs.

And then the COVID-19 pandemic forced knowledge workers to confront it as a permanent way of life. The shift seemed to happen overnight, forcing traditional organisations to navigate a new way of collaborating, communicating, and connecting.

Yet today, it’s hard to imagine spending every workday in a bustling, noisy office without the flexibility we’ve grown so accustomed to. Which leaves us with the question: What happens next?

As lockdowns lift and businesses started reopening, many employees have grown used to a life of remote work, challenging their employers’ decisions to go back to the office.

Here’s the truth: for most knowledge workers around the globe, Work-From-Anywhere will be a natural part of life. While it might not continue at the same stringent level it had to during the peak of the pandemic, it has become the preferred work arrangement that employees won’t let go of too easily.

Where work-life balance was once the ultimate goal, we now strive for life-work balance: instead of fitting our life into our work, remote work allows us to reprioritise our time and integrate our work into our lives. And where companies once competed for the best talent in their region, they now seek the best talent worldwide. This has shifted the power dynamics in favour of top-performing employees, consequently driving executives to up their game of benefits and organisational culture if they want to keep or secure top talent. A massive part of this includes a flexible work-from-home lifestyle.

So, what is the implication of remote work on your business?

According to a report by Owl Labs, remote work results in higher employee engagement, increased productivity and improved key performance metrics. In a work week, those who work from home are more consistent, work more hours and get more done.

We know what you’re thinking. How can employees be more focused while working from home?

A study by Standford of 16,000 workers found that working from home increases productivity and performance because it tends to be a quieter, more convenient working environment. It also cuts time spent on commuting and getting ready for work, leaving more time for productive tasks. The same study reported improved work satisfaction with attrition rates cut by 50%.

But what are the insurance implications of remote work?

The shift to remote work affects business risk exposure in a number of areas and ways that can affect your company’s insurance policies. It’s crucial that you review your policies carefully to ensure there aren’t any coverage gaps or issues, and to see if your broker is able to recommend changes that will better protect your business.

Here’s what to look out for:

Cyber insurance

Dedicated cyber insurance is essential for any company that employs remote workers as different networks can’t expose vulnerabilities for hacking, social engineering tactics and privacy issues. A standard cyber insurance policy protects your company against losses and third-party liability that results from a network security breach or malfunction, which includes malware, ransomware, or any other methods used to compromise your network and sensitive data.

Liability insurance

General liability protects your business against financial losses that result from advertising injury, bodily injury and property damage caused by your company or employees. Speak to your broker about additional coverages to protect you and your employees from all of the risks that may not be covered by your commercial general liability policy.

Property insurance

Commercial property insurance typically only covers property that your company rents or owns, and the content on the property. Have a look at your current policy, as it may exclude or heavily limit coverage for property outside of specified locations. Check that your policy covers all company-owned equipment used by remote workers, as well as any data that it houses.

When it comes to your insurance policy, if in doubt, we always recommend that you check with your broker. At Fulcrum Premium Finance, our brokers offer a reliable source of informed advice backed by years of experience, which allows them to better cater to the specific needs and risks faced by our clients.

Premium financing is an option that should be considered by all businesses, regardless of size or sector. The more sizable or complex the policy, the more benefit your company stands to gain. Get in touch with us today.

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