Just as with a home or vehicle, if you are a business owner and have office space, you will need to have an insurance policy to cover it. It is one of the less glamorous aspects of running a business. Whether you are a current business owner or looking to start a company, you may be wondering precisely what office insurance is and why you need it for your physical space. Below, we will discuss these exact topics and a bit of what to look for when shopping for the right policy for your business space.
What is Office Insurance?
There are three crucial aspects to consider that comprise what this type of insurance will need to cover.
- Building and contents insurance – this will cover the premises and all equipment in it.
- Public and employer’s liability insurance – this will cover your staff and customers.
- Business interruption insurance offers protection of ongoing costs should you have to stop business for some time.
These three will make up the whole of what you want to have covered by your policy, which will be influenced by the amount of coverage you are looking for and your budget.
Is Office Insurance Necessary?
The simple answer? Yes, it is necessary if you run a commercial space. Your specific policy will be designed to account for the risks that your particular industry may face. The basic types of coverage we will talk about below are the general standard and legal requirements across all offices. No two offices or buildings are the same. That is why it is essential to understand your business’s specific risks so that you can tailor a policy with your insurance provider. Let’s break down five features of this insurance.
- Public liability insurance – This protects both you and your customers. As a business owner, you are responsible for ensuring your office is as risk-free as possible. Accidents will inevitably happen. Public liability insurance will cover any loss, damage, or injury to a third party that occurs on your premises.
- Employer’s liability insurance – The current legal minimum of coverage is £5 million. Employers’ liability insurance guarantees you will have access to adequate funds if you ever need to compensate a member of your staff for an injury or damage from a situation that you as their employer are deemed liable for. You should make sure to have employer’s liability for volunteers or freelance workers as well.
- Office buildings insurance – Buildings insurance is only necessary if you own the property and want to insure it as part of your comprehensive business insurance. Otherwise, the landlord or property owner will have the buildings insured on their own commercial property insurance policy. There is an exception to this. Be aware that improvements you make will not be automatically guaranteed on your landlord’s cover. For example, Installing a new kitchen or meeting room should be added to your insurance. Because you paid for the improvement, ensuring it will be your responsibility.
- Business interruption – If your property becomes ruined for any reason, your business interruption protection will cover you so that you can continue paying your rent, overheads, wages, and other expenses that you need to keep your business running while repairs or rebuilding are taking place.
- Office contents insurance – Anything permanently fixed in your office building is covered with the office buildings insurance itself. Anything that is not fixed down needs to be included in your contents insurance. This will consist of things like desks, computers, and cabinets. If you rent the property, your landlord will have a separate policy that covers the contents of the building that belong to them.
What to Look For When Purchasing Office Insurance
It is essential to do a few things when purchasing an insurance policy for your business. The first is to make sure to get estimates from more than one provider. Many insurance groups will price match for identical coverage. Like any business owner, you are conscious of your bottom line, so it is essential to stick to your budget. The second is to make sure you find someone who listens to your needs and helps you tailor a policy for your specific business. It does you or your company no good to pay for a cookie-cutter plan that doesn’t meet the criteria of your unique business. Office insurance is a need in today’s world, so make sure to do your research to have peace of mind you are covered.
Find out all you need to know about Office Insurance here.
Other useful links about business insurance:
Business Contents Insurance
Business Building Insurance
Employers’ Liability Insurance
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