TOPIC: Home Office Guidelines

OVERVIEW: As employees become more mobile, many more companies are offering options for employees to work out of their homes. In doing so, there are certain insurance and risk management precautions that companies need to consider along with the other aspects of this home office arrangement.

First, it is important to have the employee establish a dedicated home office space, which should be private, stable, quiet and secure. The office should not be part of a room where other general household functions are performed (ie. the kitchen table).

As part of the home office approval process, the employee's supervisor should request to see the proposed home office space to make sure that it meets the standards, and may also inspect the office during working hours (with 24 hours notice to the home office employee) throughout the life of the home office arrangement.

Home office equipment is likely to be company property, and is therefore covered by the company's commercial insurance policies. Other insurance coverages, including general liability and workers compensation coverages, also extend to the home office. Proper precautions should be taken by the home office employee to protect all corporate assets (including information resident on the home office PC) under the care, custody and control of the home office employee. The equipment will remain the property of the company and must be returned in the event the employee terminates or moves into a company office.

Finally, to minimize liability risk, employees working at home should not have clients come to their home office. Meetings should be held at the closest company location, customer office, or at a conference room/meeting center at a nearby hotel.