The impact on insurance of hybrid working

Europe’s roads achieved record safety during the Covid-19 pandemic as lockdowns kept people at home and vehicles parked. But as economies re-opened, traffic volumes rose, and so did collisions.

Analysing the most severe crashes, the European Commission reports that road deaths fell by 17% between 2019 and 2020, and in 2022 were still 10% lower than pre-pandemic levels.

But accident trends are only consistent across some countries. INRIX reports, for example, that in 2022 collisions increased in the UK (+11%) and Germany (+5%) but dropped in Spain (-7%). 

For businesses, working from home should reduce fleet mileage and lead to fewer accidents. However, massive inflation in vehicle repair costs has swallowed the savings delivered by fewer claims, so premiums remain stubbornly high. 

Moreover, additional insurance issues arise from employers’ duty of care for staff working from home. RIBA Insurance advises companies to “Ensure the welfare of their people in a blended work environment.” This includes employers’ liability insurance for claims, such as a perceived health and safety failure.

Businesses also face the heightened risk of a cyber-attack when employees use home Wi-Fi connections that may be easier to attack than a corporate IT network.

And even the risk of theft of company-owned equipment, such as laptops, from employee homes means businesses must extend insurance policies from a fixed location to an all-risk area.

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