A few years ago, during the surreal and dystopian days of lockdowns, we discovered the joys of video meetings - and remote working became a reality. Many of us never returned full-time to the workplace.
For a while, everyone’s LinkedIn stream was packed with posts about hybrid and remote working. Thankfully, the avalanche of hybrid working advice pieces has subsided, so apologies for returning to the subject!
So why this article? Hybrid working is now mainstream, but insurance coverage hasn’t always kept pace. Meanwhile, the risks have multiplied…
The workplace is everywhere
In the past, business insurance focused on a single workplace. Employers knew where their staff worked, where equipment was kept, and how daily operations ran. Hybrid working changed this setup very quickly.
Now, employees often work from home, in cafés, in co-working spaces, or at client sites. Company laptops move between these places, sensitive data is accessed on different networks, and managers lead teams from a distance.
This flexibility can be great for daily operations. From a risk point of view, it brings many new challenges that businesses did not face before.
Cyber risk has expanded dramatically
One major result of hybrid working is a big increase in cyber risks. When teams work remotely, businesses lose some of the control that office IT systems provide. Employees might use unsecured Wi-Fi or cloud platforms outside the main company systems.
Cyber criminals have quickly adjusted to these changes. Remote workers are now more often targeted by phishing and ransomware, since they can be more vulnerable outside the office. Just one hacked device or email account can now cause major problems for an entire company.
In the past, many small businesses and professional firms saw cyber insurance as optional. Now, companies that depend on digital tools and cloud systems face serious risks to their operations and reputation, which can be costly without the right insurance.
Employers’ liability doesn’t end at the office door
Businesses are still responsible for employee wellbeing, even when staff work remotely. This means making sure workspaces are safe and suitable.
Most companies adjusted quickly when home working began, but many have not reviewed these setups since. Bad workstations, poor equipment, and repetitive strain injuries can all lead to claims over time.
Mental health and workplace stress are now bigger concerns. Remote work can blur the line between work and home life, causing burnout, isolation, and communication problems. For employers, managing these risks remotely is often more complex than in traditional office environments.
Business equipment is constantly moving
Hybrid working has also changed how companies handle their physical equipment. Laptops, monitors, phones, and other equipment are no longer kept just in the office. Now, they often move between homes, offices, and public places.
This makes accidental damage, theft and loss more likely.
Many businesses think their office insurance covers equipment everywhere, but in fact, coverage can vary a lot depending on the policy and how the equipment is used. If businesses do not check their coverage closely, they might find out too late that off-site equipment is not protected.
HR exposure has increased
Managing hybrid teams introduces a new layer of leadership and HR risk. Problems with communication and less face-to-face time can lead to misunderstandings and disputes more easily than in a regular office.
It can be harder to spot and address issues such as performance, discrimination, flexible work, or workplace culture when working remotely. Businesses still need to follow employment rules, no matter where their staff work.
For directors and senior leaders, these new responsibilities make management liability insurance more important,
especially as employment claims are rising in many industries.
Policies written for a different business environment
Many organisations face a challenge because their insurance policies were set up before hybrid working became common. Policies might still be based on old ideas, like everyone working in the office, equipment staying put, or less digital risk. As businesses change, these ideas can become outdated without people realising.
This does not always mean businesses have no insurance. More often, it means their policies do not fully match how they work now. This difference is very important if a claim needs to be made.
Has your insurance kept up?
As work environments keep changing, insurance should change too. Regular reviews help ensure coverage aligns with current operations, technology, staffing, and management needs.
Insurance shouldn’t be an afterthought. Companies that handle hybrid working well are not just changing how they operate. They are also rethinking how they manage risk throughout the business.
The workplace is anywhere, but so are the risks!
Daniel Stoner, Founder / Managing Director of base Insurance Brokers.
Find out more at www.baseinsurance.co.uk
01273 101380
