If you’re working from home or you own a business where your employees work from home, you might have some questions about remote workers’ compensation. How does workers’ compensation differ when you work from home? Does workers’ compensation even apply when you work from a distance? Don’t fret, because we’re here to answer all of these questions in our guide to remote workers’ compensation.
Is Workers Compensation Required For Remote Workers?
Yes, workers’ compensation is required for remote workers in almost every state of the U.S. Remote workers are still considered employees, thus making them eligible for workers’ compensation if they’re injured on the job. That said, some businesses don’t need to purchase remote workers’ compensation insurance. There are numerous factors that determine whether your business needs to get its own policy.
Whether an employer needs to purchase remote workers’ compensation depends on the number of employees on their team along with their state’s regulations. For example, in Alabama, an employer must have five employees working for them before they need to purchase workers’ compensation insurance.
Since requirements differ from state-to-state, it is important to check your local laws each time you hire an employee. This will ensure that you have all of the necessary policies in place to protect your employees and your business.
How Does Remote Workers’ Compensation Work?
You might be wondering what counts as an injury “on the job” and what happens under remote workers’ compensation if an employee is working from home. This varies from case to case and depends on whether the injury involved the job. It will also depend on whether they were injured during work hours and if they were using materials provided by their employee.
For example, tripping and falling in one’s bathroom during work hours probably wouldn’t qualify for workers’ compensation. Although the injury occurred during work hours, it did not involve the job. If an employer sent someone a computer to use and it electrocuted a worker after malfunctioning at home, that might be a case where they’re covered under workers’ compensation insurance.
Conclusion
Determining whether you need to purchase workers’ compensation for your business depends on multiple factors. These will depend on where your business and employees are based along with how many employees you have on your team. To make sure you have all the necessary policies in place, consider working with an experienced team of insurance professionals like our experts at Three Arbor Insurance.
Contact us today to learn how we can help you!
