People have been working remotely for many years. However, the onset of the COVID-19 pandemic shifted the remote work trend into overdrive. Over 60% of American employees have worked from home at some point since the COVID-19 pandemic. The sudden shift has seen many businesses embrace remote working even post-pandemic.
This paradigm shift has got many small business owners thinking about whether they should get workers’ compensation for their employees working remotely. If you are wondering if your business needs workers’ compensation insurance for remote employees, this guide will greatly help.
Read on to determine whether workers comp insurance is essential to remote workers.
The Need for Work From Home Workers Compensation Insurance
So, do businesses need work-from-home workers’ compensation insurance? The answer is yes. Small businesses need to get this insurance policy, especially if they have employees working remotely. Remote employees are covered under worker’s compensation laws. This means that no matter their location, workers are eligible for compensation if they get injured doing work-related activities during working hours. Such injuries are covered under worker’s compensation insurance.
However, before the remote employee is approved for compensation, they must prove that the injury is work-related. In simpler terms, remote employees can only get compensation if they prove that they got injured while acting in the employer’s interest. Since the employee works remotely and away from the business offices, there might not always be someone to corroborate the case. Businesses must evaluate the case and make a fair judgment for both parties.
How to Work From Home Workers Compensation Insurance Works
If you plan to get work-from-home workers’ compensation insurance for your business, you might be interested in knowing how it works. Before getting to that, it is crucial to understand the dynamics of remote work. Generally, employees see remote working as a perk. On the other hand, employers often find drawbacks in this work model. For instance, employers might not have control over their employees when they work from home. Besides, you have little control over the safety of your home workspace.
When your remote employees get injured while working from home, you will not have witnesses that collaborate with their narrative. Workers’ compensation insurance only covers injuries sustained when engaged in work-related activities and during working hours. The dilemma that faces many employees is how to tell whether their remote employees have justifiable injuries or if it is something else. This is why it is crucial to understand how work-from-home workers’ compensation insurance works.
The interpretation of remote work injuries varies from state to state. However, most states use the personal comfort doctrine. This rule says that employees should be compensated for injuries they sustain while doing things like getting drinking water and going to the bathroom while working.
There are no strict guidelines on what does and doesn’t pass as a work-related injury for remote workers. However, employers must make judgment calls and investigate the matter to find facts. This is because not every injury sustained during working hours counts as a work-related injury. For instance, if an employee takes a break when working remotely and goes to have a few drinks with friends, any injuries they sustain do not qualify as work-related. Making the right call when dealing with remote work injuries is vital.
How To Reduce Remote Work-Related Injuries
As mentioned earlier, most employers find drawbacks in the remote work model because they have little control over their employees’ workspace safety. Even so, there are several measures you can take to create a safe at-home work environment. This reduces claims on work-from-home workers’ compensation and helps keep your employees safe. Some of the measures you should take include;
Develop a Telecommuting Policy
Just because your employees are working from home doesn’t mean you cannot implement measures to keep them in check. When employees come to work in-office, you have rules like dress code and time off that apply. Similarly, you should have a remote work policy that applies to all your remote employees. The policy helps define the employee’s responsibilities and what you expect of them. They must implement their responsibilities no matter their location.
Besides, the policy sets expectations around meetings, virtual communication, and status update, among others. A telecommuting policy creates the outline of remote work and helps align with everything else. It also creates a system where remote employees must clock in and clock out to help with time management.
Create a Home Safety Checklist
Another way you can help keep remote employees safe is by creating a home workspace safety checklist. When remote employees operate in a safe workspace, there will be little risk of injuries. Consequently, there will be reduced claims on work-from-home workers’ compensation. The checklist should identify hazardous items at home, like poor lighting, overloaded electrical outlets, loose cords, and cluttered pathways, among other hazards.
Let your employees know the risk these hazards pose and find ways to protect themselves. The checklist should provide details about how they can prevent accidents at home. For instance, they should organize their workspace, get rid of all clutter, and have proper lighting.
Be Keen To Formalize Cybersecurity Processes
As you might be aware, working remotely increases the risk of cyber theft. There is a significant risk of data breaches when people work remotely. When employees use their personal computers or WiFi connection, there is a risk of cyber attack. Therefore, you should encourage your remote employees only to use work-issued computers to prevent threats. You should also ensure that the devices have an antivirus to protect against possible attacks. This helps keep everyone safe.
Businesses Need Workers Comp Insurance For Remote Workers
It is necessary for a business to get workers’ compensation for their remote employees. This covers all the injuries they sustain while engaging in work-related activities. Besides, most states require businesses to have workers’ compensation insurance, even for those with remote employees. While employers have little control over their remote employees, they can implement several measures to keep them safe. This includes establishing telecommuting policies and creating a home safety checklist.
