Short answer
Second office remote partner insurance questions usually come down to one point: your policies should reflect everything your firm does and where it does it. As one agent put it to a client, “As long as all exposures were accounted for on the application, it shouldn’t be an issue.” Each change touches professional liability, general liability, workers’ compensation and property differently, so tell your agent before the change happens.
How does a second office affect your insurance?
One architect with a Colorado office and a Florida administrative branch worried that the policy listed only the Colorado address. They asked, “They know I have both offices?” In that case, the carrier confirmed both locations were fine.
That answer was for one specific policy, and yours may differ. Locations typically appear on general liability and business owner’s policies, so a new office is worth reporting even when it seems minor. Our post on New York project insurance covers a related situation where the contracting entity matters.
What happens when a partner lives in another state or abroad?
A Colorado firm added a new LLC member and architect of record who lives in Texas but spends significant time in Europe. The firm asked whether this created an issue with its E&O or workers’ compensation policy.
In that case, the professional liability carrier said no, as long as she didn’t start taking jobs in Europe. Professional liability typically follows the firm’s services wherever they are performed. Foreign projects are the usual sticking point, so ask your carrier before accepting one.
How does workers’ compensation treat remote and out-of-state staff?
Workers’ compensation generally follows where employees live and work. Each state’s payroll typically needs to appear on the policy. In the Texas example, the answer was to add her Texas payroll, and the carrier generally contemplated temporary travel abroad.
State rules vary. Some states have extraterritorial provisions, and a few run their own state funds. Confirm how your policy treats each state where you have staff.
What about equipment when everyone works remotely?
A fully remote firm asked how coverage for its machines works when everyone works from home. General liability and business owner’s policies typically tie coverage to listed locations. Equipment at home offices may fall under off-premises coverage, and limits or conditions can apply.
If staff drive their own cars or rental cars for work, ask about hired and non-owned auto coverage. Your business owner’s policy may not address this on its own.
Example: a firm that grows sideways
Consider a hypothetical engineering firm with one office. Over a year, it opens a small second office, hires a remote engineer in another state and wins a project three states away. The firm tells its agent about each change before it happens.
The agent adds the new location, updates payroll by state and confirms the project falls within the policy’s territory. Nothing about this is unusual. The point is that each change was reported while the firm could still adjust the policies.
Tell your agent when
- You open a new office or move an existing one
- You add payroll in a new state
- You hire a remote employee or a partner relocates
- You take on a foreign project
- You form a new entity or change who signs contracts, as covered in our post on New York project insurance
- A new member joins and changes the named insured list
What to check on your policies
- The locations listed on general liability or your business owner’s policy
- The states and payroll classes on your workers’ compensation policy
- Whether professional liability limits services outside the United States
- Whether equipment at home offices has off-premises coverage
- Whether hired and non-owned auto applies to staff driving for work
If you’d like help with this list, request a policy review.
Related questions
Do I need to tell my insurer about a second office?
Typically yes. Locations often appear on general liability and business owner’s policies, and your application should reflect all exposures.
Does professional liability cover a partner who lives out of state?
Often it follows the firm’s services wherever they are performed. Confirm with your carrier, and ask before taking foreign projects.
Does workers’ compensation cover employees who work remotely in another state?
It depends on the state and the policy. Each state’s payroll typically needs to be reported, and state rules vary.
Is equipment covered when my team works from home?
It can be through off-premises coverage, but limits and conditions vary. Review your property or business owner’s policy.
Do I need hired and non-owned auto coverage?
It is worth considering if staff drive personal or rental cars for work. Ask your broker how your policies treat that exposure.