Pros and cons of working from a home office

Pros and cons of working from a home office

Working from home has become a talking point for many employees, requiring business owners to decide whether remote working is the right model for their company. If you are trying to decide whether to let your employees work remotely, here are five pros and cons you should consider.

Pros of working from a home office

Better work-life balance: Many people no longer appreciate spending long hours stuck in traffic commuting to work, not when they can just as easily do their job from home. The ability to work flexible hours that fit in around their family obligations or simply suit their lifestyle can lead to greater job satisfaction, simply because employees are happy operating within a more flexible working environment.
Location freedom: With the option of remote work, employees no longer need to resign if for some reason they need to relocate to another part of the country or even overseas. Loss of skilled employees can be a big problem to small businesses who may find it difficult to replace essential staff, but if they can still work from their new location, everyone wins!
Increased productivity: When an employee can work their own hours in a comfortable environment that suits their lifestyle needs, you often find that their productivity automatically increases. A lack of disruptions such as endless meetings at work can also allow remote employees to better focus on their work and achieve more in a given time frame.
Attract more skilled employees: You might find that highly skilled employees are attracted to remote working arrangements and if your company doesn’t offer these type of working conditions, talented employees may go to your competitor.
Improved retention rates: No longer do employees remain with one company for a lifetime, many move around frequently taking advantage of various opportunities. If your company provides the type of working conditions that suits your employees, they are likely to stay longer and improve your retention rates, which can reduce your costs significantly.

Cons of working from a home office

Less collaboration: This is one of the biggest issues posed by antagonists of remote working arrangements, because employees can’t simply bounce ideas of one another and collaborate on the fly.
Greater security risks: Whether it’s client data or proprietary information, data loss or hacking can be a potential problem when employees work from home.
Inadequate resources: If employees need specialist equipment to fulfil their roles, it might not be a financially viable option for your employees.
Less accountability: Whilst productivity can increase when employees work from home, they are also less accountable for their time. This could lead to employees taking advantage of working remotely and claiming more hours than they actually worked.
Lack of community: Some people simply work better when they are motivated by other employees, enjoying the feeling of community fostered by a company. Working from home can feel isolating, which can lower productivity and negate the benefits that remote working should promote.

One other consideration for companies that are considering remote working arrangements for their employees is insurance, because the right type of insurance policies can significantly reduce your risk exposure when employees work from home.

To find out whether you have the right insurance policies in place to protect yourself and your employees while working at home, talk to an insurance specialist today.

General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

SME Business Insurance

Business Insurance is used by many businesses, but it’s best suited to SME-type operators.

SME Business Insurance

What is SME Business Insurance?

Any business in Australia, including small to medium-sized businesses, will benefit from an added layer of financial security in the form of an SME Business Insurance cover. This provides owners and businesses with protection against financial risks and the loss of key assets. It also protects customers, employees, suppliers, and contractors.

Some types of insurance are mandatory, like Workers' Compensation, Professional Indemnity, or CTP Insurance for motor vehicles – these are called statutory insurance covers. Other types of insurance are optional, but they are important ways of reducing business risk and protecting your finances and assets.

What does SME Business Insurance cover?

Property Damage – cover ranges from fire, storm, lightning and other perils to any type of accidental loss or damage. The property insured includes damage to buildings, contents, stock, plant and equipment, raw materials, and consumer goods.
Business Interruption – covers weekly amounts or net profit loss and ongoing fixed costs following property loss or damage. Also referred to as Loss of Profits or Consequential Loss Insurance.
Burglary/Theft - covers break-in at the business premises and the damage is done, as well as theft of goods or stock;
Money - covers theft of money in various locations (during transit, in a locked safe, or in a private residence) at any time (within and outside business hours).
Liability - covers a variety of statutory and civil legal liability, including personal injury and property damage, environmental liability, management liability, statutory liability, professional liability, aviation, marine and motor vehicle-related liability;
General Property - covers specified portable property against accidental loss or damage once it is taken off the premises, within Australia or overseas;
Equipment - covers sudden internal derangement and accidental loss or damage to plant, equipment and machinery, as well as computer and other electronic equipment. Loss of stock and business interruption cover can also be part of this insurance.
Motor vehicle & mobile plant – covers registered and unregistered motor vehicles, mobile plant & equipment, farm equipment, construction plant, as well as attachments and trailers. This insurance can also cover loss of income, downtime and hire costs of replacement equipment.

Speak to an insurance expert

It is our business to understand your objectives, needs, financial situation and risk profile and provide you and your business with tailored risk and insurance advice.
This is how we work with your business:

1.   We analyse your objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions.
2.   With your input, we undertake risk assessments and conduct market research to determine the most suitable insurance product(s) for your key risk exposure.
3.   Your insurance adviser will present appropriate strategies and solutions and also negotiate and place insurance covers agreed.

Frequently Asked Questions

How can insurance help small businesses in Australia?
- In Australia, small businesses are encouraged to invest in business insurance to help protect their business from costly eventualities like damage to property and liability claims. Investing in a comprehensive yet affordable insurance policy promotes the continuity of the business in times of losses or great financial trouble.
What does SME stand for?
Small-to-medium enterprises (SMEs) are businesses whose revenue, number of employees and assets do not exceed a certain threshold. Each country or industry defines a set of criteria to determine whether an organisation falls under the SME category.
How can insurance help small entrepreneurs or SMEs, or how it relates to risk management?
Risk transfer is one of the treatment approaches in managing risks in business, and insurance is an example of risk transfer. It’s a strategy that SMEs employ to shift a risk or a liability from one party to another when that party specialises in managing a specific kind of risk/liability.
Why is insurance important for business owners?
Getting an insurance policy for your business is important, as it cushions or completely shields you from the hefty costs of certain unforeseen issues (accidents, damages to properties, effects of force), legal claims, and other liabilities. Without insurance, business owners might be forced to foot the bill out of their own pocket.