Workers' Compensation Trends in a Remote World: What Business Leaders Need to Know

Once a temporary shift, remote work has now cemented itself as a core part of modern business. However as living rooms, kitchen counters, home offices, and co-working spaces replace traditional offices, a critical question has emerged: how does workers’ compensation insurance keep up with the remote workforce?

An empty hallway in an office

If you’re a business owner, executive, or human resource leader, ignoring this evolution could expose your company to compliance risks, higher premiums, and confused employees. Let’s explore the key trends shaping workers’ comp in the age of remote and hybrid work.

1. Redefining the "Workplace"

Traditionally, workers’ comp claims hinge on whether an injury happened “within the course and scope of employment.” With remote work, that scope is now murky. Is tripping over a laptop cord while rushing to a Zoom meeting compensable? What about eye strain from staring at a screen all day?

Courts and state boards are starting to grapple with these questions—and their answers vary by jurisdiction. Employers must clearly define remote work policies, including designated work hours and spaces, to help determine what counts as a work-related injury.

2. Surge in Repetitive Strain and Ergonomic Claims

Remote workers often lack proper home office setups, leading to increased reports of:

• Back and neck pain

• Carpal tunnel syndrome

• Eye strain and migraines

  
  

These aren’t dramatic accidents, but they can trigger costly claims over time. Forward-thinking businesses are offering ergonomic stipends or virtual assessments to preempt injuries—and protect their premiums.

3. Multi-State Complications

Remote work introduces new compliance headaches when employees relocate across state lines. Workers’ compensation laws are state-specific, and many require out-of-state employers to purchase separate coverage or file paperwork to remain compliant.

A recommendation: audit your team’s locations and make sure you’re covered wherever they are—not just where your business is headquartered.

4. Greater Emphasis on Mental Health

The pandemic fueled a reckoning around employee mental health, and some states are expanding workers' comp to cover work-related stress, PTSD, and other psychological injuries. For remote employees facing isolation or burnout, this is a growing area of concern.

5. Rise in Fraud Detection Tech

With remote claims harder to verify, insurers are leaning on AI-powered tools to analyze claim data, detect inconsistencies, and flag suspicious patterns. While this can streamline legitimate claims, it also means companies need solid documentation to back up their incident reports.

What Employers Can Do Now

To stay ahead of the curve, businesses should:

Update telework agreements to spell out work hours, locations, and injury reporting procedures.

Provide ergonomic support—think equipment stipends, assessments, or training videos.

Audit insurance policies for compliance with each state where employees reside.

Ensure documentations are thorough, accurate, and legally sound, especially when incidents occur offsite.

Educate managers to recognize signs of mental health issues and encourage employees to speak up early.

Final Thoughts

Workers’ compensation, like many business risks, has evolved. In today’s flexible world, protecting your team means thinking beyond office walls. With a proactive strategy and the right guidance from your insurance broker or agent, you can support employee safety while keeping your coverage compliant, efficient, and fair.

Need help tailoring a workers’ comp program that fits your hybrid team? Let’s start that conversation.

At Axios Risk Solutions, LLC., we help small and medium-sized enterprises, families, and individuals minimize and manage their business risks through tailored risk management strategies and protect their business and assets through a variety of insurance solutions in the market. To request a quote or speak to us, call (404) 480-0272. ​

Author: Sandra Owusu-Fianko, MS ERM

Sandra Owusu-Fianko, is the Principal and Risk Advisor at Axios Risk Solutions, LLC. She has extensive experience in the insurance industry and is passionate about finding appropriate risk management and insurance solutions for her clients.