Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our weekly newsletters. Signing up for any of our section newsletters will opt you in to the weekly Coronavirus briefing.
Sign up for our Insurance UK newsletter
You must correct or enter the following before you can sign up:
Thank You!
Law360, London (April 2, 2020, 3:51 PM BST) -- Businesses should provide proper support for staff working remotely amid the coronavirus lockdown, a top insurance broker warned on Thursday, as they could be faced with claims from staff experiencing stress or injuries from poor working environments.
Darren Holmes, head of operational risk in the U.K. at Marsh, said he had heard concern from employer's liability insurers that some companies could be bombarded with claims from home workers over poor mental health caused by prolonged isolation.
Holmes was speaking at an online risk management webinar for business clients in the hospitality sector, hosted by Marsh, the world's largest broker.
"There is a perception there is going to be an increase in claims for poor mental health and stress in particular," Holmes said. "It's imperative you re-engage with your employees and they are aware of the help that is available."
The warning came after a study by the University of Sheffield earlier this week found that the number of people experiencing depression rose markedly in the U.K. the day after the government lockdown, up to nearly four out of 10 survey respondents.
Employer's liability is mandatory insurance that protects a business from compensation claims if an employee becomes ill or injured through work. Companies are, however, required to meet reasonable standards of care in order to be able to claim.
Holmes said companies should fulfill "statutory obligations," by ensuring that employees working from home had the required equipment, like computer mice or keyboards, as well as a safe working environment.
"Is working at home in a chair not fit for purpose exacerbating a pre-existing condition, like a back injury," he said.
Insurers believe the coronavirus impact could have a widespread impact across the entire industry, with Lloyd's of London suggesting up to 14 different business lines could be affected.
Holmes said there could also be claims from public liability insurance, which protects businesses from compensation claims made by a third party who is injured or falls ill on the premises.
He said people could try to claim that they contracted COVID-19 while at a restaurant.
"My personal opinion is that it will be a bit of a challenge," he said. "How would you ever pin down evidence that you contracted it at a particular store or restaurant?"
--Editing by Alyssa Miller.
For a reprint of this article, please contact reprints@law360.com.
