The coronavirus has transformed life for billions of people in just a few short weeks. Since the first U.S. COVID-19 case was reported on January 21st, the number of known cases has grown significantly nationwide, reaching pandemic status and straining healthcare systems. More information is becoming available day by day as the situation evolves.

As the coronavirus pandemic continues to grow, the directors and officers of public and private organizations are facing risks on two fronts: the economic impacts of COVID-19 and litigation. Adding to the challenge is a hardening insurance marketplace.

As businesses of all sizes strive to protect their employees and preserve cash flow during the coronavirus pandemic, likely the last thing on most of their minds is employment practices liability (EPL) exposures. But EPL risks are higher during pandemics and other periods when employers are more likely to furlough, lay off or ask employees to work from home.

The effects of the COVID-19 pandemic are pummeling the U.S. stock market, and our economy is beginning to feel the strain of nationwide business disruptions. Responding to slowing business demand with layoffs, wage cuts, or a reduction in employee hours may provide opportunity for greater company scrutiny by a wide variety of claimants, including employees. Fiduciary liability is an often-overlooked area of insurance coverage that can help protect businesses offering retirement or employee benefit plans that may be affected by the economic shift.

As COVID-19 continues to spread across the U.S., organizations and businesses are taking seriously their responsibility to facilitate social distancing as we attempt to slow the spread of the virus. While there are many benefits to working remotely in the current situation, remote work can place greater strain on IT systems and increase cyber risks. Both employers and employees need to take action to protect themselves and business continuity. Remote work isn’t a new concept and is considered the norm within many organizations. However, some businesses have never needed or utilized large-scale work-at-home plans prior to the current pandemic, and may not be aware of their cyber vulnerabilities.