When employers or business owners invest in equipment, some risk is involved. It is especially true if they are not in constant sight or management of the equipment. But it is necessary for productivity and the bottom line. It is why many small business owners get equipment insurance to safeguard their investments.

Taking out an insurance policy on business equipment is common. But the pandemic made some significant changes to the way businesses run. One of the notable differences is remote work. So how can modern employers get equipment coverage in the era of working nomads?

The information below details the answer while providing helpful insight into related topics.

Equipment Insurance Policy

Business equipment insurance covers damage or loss to property or equipment used during business activities. This form of insurance is known as 'business insurance,' 'contractors equipment insurance,' 'equipment floater insurance,' or 'commercial contractors equipment insurance.'

It is worth noting that business equipment insurance differs from 'contents insurance' in that content insurance tends to be for individuals. Equipment insurance is specifically for businesses.

Types Of Covers

Business owners can get two primary equipment cover policies from various insurance companies. They are:

1. Property Damage Cover

This type of policy is for employers who choose to cover business equipment strictly in the confines of the company premises. It means the equipment is only covered if it sustains damage or gets lost within the confines of the office.

Of course, different insurance companies will have varied defined perils. However, most will cover the following:

●  Lightning. When lightning strikes workplaces and causes damage to equipment.

●  Fire. Any fire within the job site that destroys or damages essential equipment.

●  Storm/flooding. When a storm or flood leads to significant equipment damage.

●  Malicious persons. When criminals damage or destroy equipment, plus other acts of vandalism.

●  Explosion. When explosions outside or inside the premises destroy or damage important equipment.

●  Earthquakes. If an earthquake impacts the business and equipment, sustain damage.

These policies can also cover subterranean fires, stolen equipment, plumbing accidents, equipment breakdown, impact by road vehicles or animals, accidental loss and destruction, damage, and theft.

2. All Risk Cover

The all-risk cover provides coverage for any business equipment that sustains damage during the period of insurance. Meaning it covers equipment regardless of its location. Most companies offer floater policies for all-risk policies. It covers certain types of moveable equipment without regard to its location.

3. Cost Of Work Equipment Policy

The cost of work equipment insurance policies differs depending on location, type of equipment, plus the insurance company.

Therefore, giving average insurance costs would need to be more accurate since significant differences exist. Business owners have to request insurance quotes or estimates for the types of equipment that require coverage.

Speaking of work tools, policies can cover the following types of equipment:

●  Rented or borrowed equipment.

●  Small or large contractor's tools.

●  Heavy equipment.

●  Work-related clothing.

●  Equipment requiring low voltage and power to operate. It includes computers, laptops, audio-visual equipment, medical equipment, etc.

Can You Put Insurance On Your Remote Teams' Work Tools?

More employees are working remotely, which poses a question for many business owners– can I put insurance on remote teams' work tools? Yes, employers can insure these items.

In addition, business owners must also update employee insurance plans. Some clauses will no longer be relevant, and the policy will not cover new concerns. Organizations need the change to avoid legal implications.

What To Include Remote Teams' Insurance Coverage

Businesses have different needs based on their operations and employees. However, as long as business owners have remote employees, they must include the following in their insurance packages:

1. Equipment Insurance

Just because businesses don't own or rent office space does not mean they do not need equipment insurance. Employees must cover any work equipment that employees may use when working remotely. It can cover equipment such as laptops, computers, printers, internet routers, etc.

It is also worth noting that equipment insurance can cover data on personal devices. Therefore, policies can insure the work data on personally-owned devices even if employees don't use work computers. 

2. Cyber Insurance

Older insurance policies do not have cyber insurance because hacking and data theft have recently become a serious concern.

Employers should take these threats seriously in an online environment since most remote workers rely heavily on the internet. Information leaking can lead to severe financial loss. Managers must sign up for inclusive cyber insurance policies that can help in the case of a data breach.

3. Employers' Liability Insurance

A general liability insurance policy covers any physical harm to workers. And in the era of remote work, employees are valuable work assets.

Usually, the business owner's policy details depend on where the injury occurred and what the coworker was doing at the time of injury.

Because remote work is diverse, employers must indicate 'coverage territory.' It must cover at least one location from which the workers work. Some also cover locations where employees travel to.

Benefits Of Work Equipment Insurance

There are two main benefits of work equipment insurance:

●  Protects against financial loss. Replacement costs for damaged, stolen, or destroyed equipment often leads to financial loss, thus affecting the business. However, equipment insurance safeguards against this.  

●  Protects employees. Employers are responsible for work-related injuries even for remote employees– especially if their roles demand a lot of traveling. Insurance ensures the employees are cared for in case of injuries or illnesses. Providing insurance to remote employees can even improve employee satisfaction, translating to higher retention rates. In addition, it gives employers a competitive edge in attracting top talent.

Remote Work Still Needs Insurance

Employers must care for their top investment in remote work– the employees. Inclusive medical insurance for remote teams is a necessity in modern work environments.

Workpay offers different employee benefits for organizations including; medical insurance that gives access to hospitals across the country, WIBA policy offers benefits to the employee and company. Reach out to Workpay to learn more about all the benefits available for your employees.

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