The shift to hybrid and work-from-home (WFH) arrangements has become a defining feature of the modern workplace. While this transition offers flexibility and productivity benefits, it also introduces a host of new challenges; particularly when it comes to managing risk and insurance.
At Sustain Insurance Brokers, we understand that UK businesses need to navigate these changes with precision, ensuring they are adequately covered for emerging risks while aligning their insurance strategies with their Environmental, Social and Governance (ESG) commitments. In this article, we explore the insurance considerations for businesses embracing hybrid work models and how tailored solutions can safeguard against unforeseen risks.
The Evolving Workplace: Hybrid as the New Normal
In the UK, hybrid work is no longer a trend, it’s the standard. A 2024 study by the Office for National Statistics (ONS) revealed that 45% of employees in senior positions now split their time between home and the office, with many businesses permanently adapting their operations to accommodate flexible working. This model has brought benefits like reduced overheads, improved work-life balance and access to a broader talent pool.
However, this shift also comes with risks that were less prominent in traditional office-based arrangements, including:
- Increased cyber vulnerabilities.
- Health and safety liabilities in home workspaces.
- Potential gaps in employers’ liability and property insurance.
As a result, UK businesses must rethink their insurance programs to address these unique challenges.
Key Insurance Considerations for Hybrid Work Models
1. Cybersecurity Risks
Remote work expands the digital attack surface, making businesses more vulnerable to cyber threats. Employees working from home often use personal devices, unsecured Wi-Fi networks, or outdated software, increasing the risk of data breaches, ransomware attacks and phishing scams.
Insurance Implication:
Traditional cyber insurance policies may not fully address the risks associated with a dispersed workforce. Businesses should ensure their policies:
- Cover personal devices used for work purposes.
- Include specific protections for remote access vulnerabilities.
- Provide coverage for third-party liability in the event of a data breach.
At Sustain, we help businesses customise cyber insurance policies to align with the unique needs of hybrid work models.
2. Employers’ Liability Insurance
In the UK, employers are legally required to hold Employers’ Liability Insurance to protect against claims for workplace injuries or illnesses. With employees working from home, businesses may face questions about how liability extends to remote work environments.
For example:
- Who is responsible if an employee trips over loose cables in their home office?
- How can businesses ensure compliance with health and safety regulations when employees are not on-site?
Insurance Implication:
Employers should ensure that their policies explicitly cover home-based work arrangements. In addition, businesses must conduct remote workplace assessments (virtually or through self-assessment tools) to identify potential risks and mitigate claims.
3. Property Insurance
Hybrid work arrangements blur the line between personal and business property. Employees often use company-issued equipment like laptops, monitors, or ergonomic chairs at home. These items could be damaged, lost or stolen outside of the office.
Insurance Implication:
- Businesses need to verify whether their existing commercial property insurance extends to items used off-site.
- In some cases, adding an endorsement for “portable equipment” or “property away from premises” is necessary.
At Sustain, we work with businesses to ensure their property insurance policies are comprehensive and include off-site coverage where required.
The Future of Work: Staying Protected in a Hybrid World
Hybrid work is here to stay and while it brings undeniable advantages, it also introduces new complexities for risk management. Businesses in the UK must adapt their insurance strategies to reflect these changes, ensuring they are fully protected against emerging liabilities.
At Sustain Insurance Brokers, we are committed to helping businesses thrive in this new era of work. With our expertise in bespoke insurance solutions, we can help your organisation navigate the hybrid work landscape with confidence.
For more information on how to protect your business in a hybrid work environment, get in touch with us today. Together, we’ll ensure your insurance program is as dynamic as your workforce.
