In the scramble to keep things going in 2020, many businesses skipped over the policies, procedures, and documentation part of work from home (WFH) arrangements. Now that we’ve all had time to assess what works and what doesn’t, businesses need to make official updates to their handbooks and insurance policies.
Hopefully, you have remained in steady contact with your business insurance agent over the past few years to make sure you have the right coverage for every employee’s work arrangement. If these conversations slipped through the cracks, or you made some temporary changes to get through the chaos, it’s time to document all of your business decisions and make sure your policies match on paper and in practice.
What Do I Need to Address in a WFH Agreement?
Your very first WFH agreements may have been cobbled together quickly, intended to merely set some ground rules to make sure everyone could effectively get their work done. If you have not yet updated your written agreement, even if things are working pretty well, this should be a year-end priority. Some work expectations to address in your WFH agreement include:
Hours that employees are expected to work and be available
- WFH has opened up a lot of flexibility by allowing employees to get their work done outside traditional hours. This still requires some guardrails to ensure that people are available for calls and meetings during business hours.
- If work hours need to be pretty firm, time clock procedures should be clearly explained in the agreement.
Requirements for a home workstation
- WFH is a great option for reducing your office overhead costs and attracting talent from outside your local region. Even employees who used to be in the office might have moved somewhere that wasn’t an option when they were commuting. That being said, it’s important for everyone to have an appropriate workspace. If employees are working with confidential information or regularly interact with clients, you may want to require that their workstation offers privacy.
- The WFH agreement should have guidelines for each employee’s video call environment, dress code, and background. A company-wide checklist for video call procedures and etiquette is a good tool for making sure everyone is a professional representative of the organization.
- The equipment and internet connection employees use need to be reliable and secure. Spell out how any work-provided equipment should be used and maintained. If you reimburse employees for equipment, internet service, or cyber protection tools, make sure they understand their own responsibilities for the equipment.
In-office requirements and expectations
- Full-time WFH arrangements might not be ideal for every company. If you offer a hybrid work schedule, consider running it by an HR Specialist to confirm that it is fair and equitable for all employees.
- Even companies that are mostly WFH will sometimes have a reason to ask everyone to report to the office. Clear guidelines about how much notice will be given for in-office days and how travel or accommodations will be handled keep everyone on the same page.
If you have discovered any strange or habitual issues with your employees who work from home, be sure to address them in your agreement. If you aren’t sure about what you can legally require or prohibit, review your thoughts with your insurance agent, an HR Specialist, and your business attorney. They, or your employee benefits provider, may have templates that will get you started on your documents.
What are the Insurance Considerations for WFH Employees?
Every company has specific insurance needs for a WFH arrangement. It’s important to review with your agent exactly how, when, and where your employees are working to make sure you have the right coverage in place. It might come up during your conversation that you have more exposure than you feel is appropriate. This could lead to some changes in your WFH policies. Some of the insurance considerations for your WFH arrangement include:
Workers Compensation
What happens if your employee gets injured at home during work hours? The answer will depend on whether the employee was engaging in a work activity when the injury occurred.
Cyber Liability
If employees are working through their home internet service, it is important to have them log in to work using encrypted systems. Consider hosting cyber training for all employees so that they understand how to best protect their work and home devices from threats.
Property Insurance
If your employees are using your property to work in their homes, your property insurance may cover the equipment. But your employees have the same duty to maintain that equipment in their home as they would in the office. Your WFH agreement should explain what happens if the company property is stolen or damaged in a burglary, fire, flood, or other event.
Employment Practices Liability (EPL)
If an employee does or displays something on a work video call that another employee finds to be offensive, discriminatory, or harassment, you have the same liability you would have if it happened in the office. Review your EPL insurance with your agent to make sure you understand your exposure for what is happening on an employee’s Zoom screen.
Communicate All Policies Clearly and Require Signatures
Now that so many companies have recognized the positives of work from home arrangements, employers are looking to optimize productivity and make sure their professional standards are being maintained. If you have decided to embrace this newly remote way of working, set your business up for long-term success. Communicate your policies in writing and make sure all employees have signed off on their agreements. This will keep expectations clear so that everyone can focus on doing a great job.
If your updated policies include any major changes to the WFH arrangement you’ve had for a few years, consider offering a grace period for employees to get on board. People made significant lifestyle changes in the past 4 years and might need time to adjust. Be clear about transition periods, deadlines, policies, and non-compliance.
Do you need to catch up all of your insurance policies and work from home agreements? Contact us to review your business changes over the past few years. We’ll go over your existing policies and make sure you have the right coverage in place to protect your business and your employees. Smyrl Insurance educates, nurtures, and empowers small businesses through all kinds of milestone events and changes so that they have the right coverage for today’s circumstances. We work with small and mid-sized business owners for cyber liability, property, liability, workers compensation, employment practices liability, and other business insurance needs in Hatfield, Lansdale, Souderton, Harleysville, and throughout Montgomery County, Pennsylvania.