Many current businesses own cyber insurance policies that actually may not cover incidents or claims that are the result of an employee using his/her own personal device(s) for Work From Home (“WFH”) purposes for their employer.
This is an easy mistake for employees as WFH is the current norm. As with all insurance contracts, whether there is coverage or not will depend on the specific terms and conditions of the insurance policy itself. Specifically, certain insuring agreements may limit or exclude coverage for computer hardware that is not owned by the named insured (i.e., the business). Additionally, other insurance policies may have other requirements related to the use of personal devices by employees, such as requiring a formal written policy by the employer to prohibit such use or advise as to the conditions of the use of such devices for WFH purposes.
Key Takeaways for Clients:
- Update your employee handbooks, policies and employment agreements to address WFH , including but not limited to the use of personal devices and home networks
- Read your cyber policy! (also verify if you have coverage in your E&O policy or related policies for claims that may arise when an employee deviates from WFH written policies or related agreements)
- Ask your broker to verify coverage(s) for WFH related incidents (in writing!)
HMB Legal Counsel will continue to provide updates as the situation evolves. The ongoing issues related to the spread of the Coronavirus (COVID-19) have had and will continue to have a significant impact on individuals, families, businesses and markets. Visit our collection of resources providing guidance during these fast-changing circumstances.