Home-Based Employees Add Potential Risk for Employers

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Workplace Flexibility Adds Risk Complexity

Working from home can be a valuable benefit that helps employers retain employees seeking the flexibility and convenience of not having to commute.  In their directive on Home-Based Worksites, the Occupational Safety & Health Administration (OSHA) states “Family-friendly, flexible and fair work arrangements, including telecommuting, can benefit individual employees and their families, employers, and society as a whole.”  According to an analysis of 2005-2014 American Community Survey (US Census Bureau) data conducted by GlobalWorkplaceAnalytic.com:

  • 50% of the US workforce holds a job that is compatible with at least partial telework and approximately 20-25% of the workforce teleworks at some frequency
  • 3.7 million employees (2.5% of the workforce) now work from home at least half the time
The trend toward telecommuting and utilizing remotely located workers is expected to continue.  While beneficial in many ways, the move toward home-based workers is not without some additional risk and exposure to the employer.  The same hazards presented by working in a physical “main” office are also present in a home-based office setting.  However, given the alternate physical location and reduced access to support operations, some of these hazards may be exacerbated or modified.

Potential Risks

Telecommuting and teleworking arrangements can vary from a formal, on-going, work-from-home agreement to an occasional project based work assignment.  While beneficial to both employer and employee, permitting employees to work offsite (particularly from their homes) can create unexpected and unanticipated liability for employers.  Potential liabilities to employers who allow telecommuting include workers compensation, use of personal auto, third party claims, cyber security and discrimination.

Best Practices for Home-Based Worksites 

To help employers and employees partner effectively in work-at-home arrangements, Berkley FinSecure offers some best practices to help promote safety, security of corporate information and property, and a mutual understanding of the agreement. We’ve put together valuable information on potential risks and best practices with numerous links to helpful websites as well as a home-based worksite safety checklist that could be a good basis for your financial institution customers to help minimize and manage their liability for home-based employees.

Make Sure Your Financial Institution Clients Have the Right Coverage

Make sure your customers have the right insurance coverage from the financial institution experts, Berkley FinSecure.  Contact any one of us below for help in making sure your FI customers are protected!

VP Sales and Distribution
Jon Martin 410-372-6325
   Midwest Region
   Chuck Cook 913-553-8559
Northeast Region
Jeanne Shrum 207-415-4587
   West Region
   Scott Harris 512-800-5393
Mid-Atlantic/South Regions
Dave Cassel 443-987-8619
   Northwest Region
   Pete Verratto 973-775-5233


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Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Certain coverages may be provided through surplus lines insurance company subsidiaries of W. R. Berkley Corporation through licensed surplus lines brokers. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.

For additional information concerning W.R. Berkley Corporation’s insurance company subsidiaries, please visit: https://wrbc.info/Licensing/License.htm 

The post Home-Based Employees Add Potential Risk for Employers appeared first on Berkley FinSecure.

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