Workers’ Comp Insurance Considerations for Remote Workers

Despite highly publicized return-to-work mandates, many organizations today continue to support flexible work arrangements. If employees work from home at least some of the time, what are the workers’ comp insurance implications? Have you taken a fresh look at your workers’ compensation program structure, claims, and loss control strategies?

Remote employees: Workers’ comp insurance claim scenarios

Outcomes vary when remote workers file claims for on-the-job injuries. The following three scenarios highlight the range of what can happen:

1. A remote worker in Massachusetts went outside with his dog and slipped on wet stairs, breaking his wrist. He then filed a workers’ compensation claim, alleging it was a “workplace accident.” The insurer denied the claim, pointing to the state’s statute limiting compensable injuries. If the injured worker had reported the claim as going out for lunch, he may have been eligible for coverage.
   
   
2. In California, insurers deemed three recent claims compensable after determining the injuries occurred “in the course of employment.” The guideline: An employee must be doing an activity that benefits the employer. Underwriters look more closely at claims that happen in a work-from-home arrangement, because there is more gray area.
   
   The personal comfort doctrine applies in California, even when an employee is working from home. Taking breaks to use the restroom or refill a water bottle are work-related events due to this legal doctrine.
   
   
3. A recent court case in Tennessee (Batey, Kari v. Beacon Hill Staffing Group, LLC, 2023 TN WC 62) found that the remote worker suffered a compensable claim after falling down the stairs, hurrying to rejoin a meeting after taking a restroom break.

Workers’ compensation insurance risks for remote teams

As an employer, you remain responsible for safety, ergonomics, and workers’ compensation for both remote and office-based workers. Work-from-home arrangements present new injury risks that do not typically arise in an office setting.

The employer does not control the home-office environment. According to the International Risk Management Institute (IRMI), “Far more injury accidents occur in the home than in the workplace.” There could be hazards such as poorly designed workstations, clutter, and other dangers. Even the basics — computers and phones — present risks. Without focused effort, employers have little to no control over the ergonomics of an employee’s home office setup. An improper setup can lead to claims for repetitive motion injury, back, or neck problems.

Employers may have increased exposure to vehicle accidents. Auto accidents that occur between the home office site and the main worksite may be compensable. It may not matter whether the employee is on paid time. An insurer may even consider a trip to the store or somewhere else as business-related, if an accident injury occurs.

It’s tougher to address the actual injury or accident. It is possible that the employer will have less knowledge of an injury, and that information will take longer to get. They may not hear about it on a timely basis. It may be hard to verify the employee was working at the time of injury. The employer may have fewer tools to assist an injured remote worker. Medical care is harder to control, with typically no first aid available. Return-to-work procedures can be more complex.

Claim Prevention Strategies for Work-from-Home Employees

In the office environment, most employees have access to ergonomically appropriate equipment such as chairs, sit/stand desks, footrests, and monitor risers. However, many remote workers don’t have suitable equipment. They utilize makeshift setups like dining room tables and kitchen counters. Some employers have not provided any guidance or suitable training on how to set up a home-based work environment.

OSHA requires an employer to provide a safe work environment and training on the hazards of their work environment. In an office, the main type of injuries are musculoskeletal disorders (MSDs), including tendonitis and repetitive motion injuries. Ergonomic training is the easiest and most effective way to reduce these types of claims.

Virtual ergonomic assessments or basic ergonomic training may be the answer to help employees work safely from home and avoid costly injuries. They need encouragement to move around every 30 minutes and drink plenty of water.

Specific areas of ergonomic concern

Insurers have seen an increase in upper extremity (hands and wrists) and back injuries, as well as neck and shoulder issues. There has been a rise in physical therapy followed by many ergonomic evaluations to get employees set up correctly and on the road to recovery. Common contributing factors include:

Workstations set too high

This causes employees to lean forward and sit on the edge of their chair. This position leaves the back unsupported as the employee holds this posture throughout the day, which can lead to neck pain. Employees in a too-low chair tend to reach up to their keyboard, and this leads to upper back and upper extremity injuries.

Laptop placement

The screen is smaller. When placed on a counter or desk, it is too low. This causes the employee to look downward all day, which can lead to neck and shoulder pain. Bilateral extremity pain can also occur. Employees need an independent mouse and keyboard separate from the laptop. Ergonomic specialists also recommend a laptop stand so the employee can view the screen without looking downward.

Poor chairs/no stand-up desk option

Insurers have seen an increase in back, neck, and shoulder injuries resulting from improper seating positions.

Employers can save money by investing in basic ergonomic equipment as requested. Another option: Provide a stipend on a monthly or annually basis, so employees can purchase the needed equipment.

Employer best practices for claim prevention

All telecommuting workers are under OSHA regulations. Where the employee works needs to be free of known and anticipated hazards. But here’s the challenge: Despite all the benefits of telecommuting, there is less oversight of what the working conditions are. In the office, management can see the desk setup. If there is an ergonomic concern, they can address it. In the world of telecommuting, this is not the case.

Employers benefit from implementing these best practices:

Telecommuting policy and agreement

When hiring or transitioning someone into a remote role, require the employee to review and sign telecommuting policies and procedures. These procedures need to outline expectations, including requirements for correcting and preventing hazards.

Continual training

Educate new employees on ergonomic hazards associated with office work. Provide training updates for employees on a regular basis to keep best practices top of mind. Include instruction on housekeeping for the home office space to prevent slip, trip, and fall hazards.

Ergonomically optimized equipment

Just as if employees were working in the office, provide remote employees with the equipment they need to do their job. Ideally, this would include a sit-to-stand desk and an ergonomically friendly chair. By providing these items, your management gains some level of control of the workspace that the employees are in. They are still at home and in their space, but they are using the same company equipment that everyone else is using.

Daily stretch and flex activities

One of the biggest concerns for remote employees is the lack of movement. Encourage employees to take five minutes out of their morning and afternoon to stretch target areas. Sending out daily activities helps keep physical activity top-of-mind. Some employers include breaks between meetings as a default setting in their calendar system. For example, you can schedule a 25- or 50-minute meeting, not a 30- or 60-minute meeting. This prevents multiple back-to-back meetings with no break.

Insurance and underwriting concerns

No longer will insurers agree to classify workers as Clerical/8810 if they’re solely working remotely. Rather, many states have instituted a “teleworker” class, which often has a slightly higher rate. As loss experience begins to reveal itself, insurers will take a more critical look at remote workers and how you as an employer are ensuring safe and ergonomically correct workplaces.

Want to learn more?

• Find Vickie Edwards on LinkedIn.
• Find Nate Ward on LinkedIn.
• Find Mike Vitulli on LinkedIn.

For questions about workers’ compensation program design, claims management, safety training, or loss control, connect with the Risk Strategies Casualty Team: Casualty@Risk‐Strategies.com.

About the authors

Vickie Edwards assists organizations in reducing incidence and costs of workplace accidents. She provides workers’ comp claims advocacy and helps employers identify and mitigate remote work hazards.

Nate Ward helps clients develop controls to reduce workers’ compensation claims. His specialties include on-site risk assessments, ergonomic evaluations, educational training, and risk mitigation strategy.

Mike Vitulli works with clients to address exposures that can hurt people, property, or reputations. He assists a wide variety of industries with workers’ comp insurance programs — transportation, hospitality, manufacturing, construction, and more.