How to Handle Business Insurance for Remote Work in California

As remote work continues to thrive, California businesses must adapt their insurance policies to cover employees working from home. While shifting to a remote or hybrid environment may reduce some risks, it also creates new ones, especially regarding business insurance. To protect your business and employees, it’s essential to understand how California insurance regulations apply to remote work setups.

Evaluating Workers’ Compensation for Remote Employees

In California, workers’ compensation insurance is mandatory for any business with employees, regardless of where they work. Even remote workers need to be covered in case of job-related injuries at home. Businesses should ensure their workers’ compensation policies extend to home office environments, where hazards like poor ergonomics or home office accidents can lead to claims.

General Liability Insurance Adjustments

General liability insurance typically protects businesses from property damage, bodily injury or negligence claims. However, remote work introduces complexities regarding where and how liability applies. California businesses should review their policies to confirm coverage extends to remote employees.

Additionally, if employees regularly handle sensitive client data from home, adding cyber liability coverage may be smart to protect against data breaches or security incidents.

Commercial Property Insurance Considerations

While employees may no longer work at a central office, your business property—such as laptops, servers and other equipment—can still be vulnerable. Standard commercial property insurance policies may not cover equipment used offsite, leaving remote workers exposed. To protect your business assets, consider extending your policy to cover home offices or encouraging employees to purchase renters or homeowners insurance that covers work-related equipment.

Learn More

Navigating business insurance for remote workers in California requires careful attention to state regulations and policy adjustments. The experienced professionals at Rich Toreson Insurance Agency Inc in Mount Shasta, CA, can help ensure your business has the coverage it needs. Contact us today.

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.