Remote Work Liability: What Business Owners Need to Know

As remote and hybrid work arrangements become the norm across California, business owners face new and evolving liability risks. Business owners should understand that adapting to a remote workforce brings unique challenges, especially when it comes to protecting their businesses, their employees, and their bottom lines.

Understanding Remote Work Risks

When employees work from home or outside the traditional office, the boundaries of employer responsibility can become blurred. Common risks associated with remote work include:

• Workers’ compensation claims for injuries that occur at home
• Data breaches or cyberattacks due to unsecured home networks
• Liability for third-party injuries or property damage related to business activities
• Compliance with California employment laws, including wage and hour regulations

Insurance Considerations for Remote Work

Traditional business insurance policies may not fully address the risks of a remote workforce. It’s important to review your coverage and consider the following:

• Remote work insurance endorsements or policy updates
• Cyber liability insurance to protect against data breaches and cyber threats
• Employment practices liability insurance (EPLI) for claims related to remote work policies or discrimination
• Workers’ compensation coverage that extends to home-based employees

Contact Us

At Ranch and Coast Insurance Services in Rancho Santa Fe, CA , we help business owners identify potential liability gaps and tailor insurance solutions to fit their evolving needs. Our team stays up to date on California employment law and remote workforce trends. Contact our team today to discuss how we can help protect your business in California’s changing work environment.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.