Office Insurance - Liability and Contents
Protect your business with office insurance for property and liability risks
What is office insurance?
Office insurance is a tailored business insurance policy designed specifically for companies operating from an office premises. It provides a range of property damage and liability insurance covers. The sections of cover will typically include:
- Public Liability: Covers the business if a client, supplier, contractor, or member of the public suffers an injury or property damage.
- Employers’ Liability: Required by law, provides protection to the business against claims made by employees due to workplace injuries or illnesses.
- Buildings: Covers the office building against loss or damage from fire, storm, flood, escape of water, impact, explosion, riot and subsidence.
- Contents: Covers property damage or loss to office furniture, desks, ect, from a ranhe of insured perils such as theft or accidential damage.
- Business Interruption: Protects the loss of income from being unable to trade - indemnifying you for the loss of income or profit as a result of an insured event.
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Public liability insurance
For businesses that interact with members of the public, suppliers, contractors, or clients, public liability insurance is essential. If a client or visitor sustains an injury on your premises or their property is damaged, the business could face compensation costs. Alterntively, the business could be held legally liable for the actions of it's employees at and away from their office premises if they cause bodily injury or property damage. The public liability section under a office policy can protect the business by covering legal fees, medical expenses, and any compensation claims that are settled by your insurer or awarded by a court.
Employers' liability insurance
Companies have a legal duty to protect the safety of their employees at work. Employers liability insurance is one of the few types of business coverage which is compulsory under UK law. The cover under an office policy not only ensures compliance with legal requirements, but will protect against compensation claims arising from injury or illness of your employees. If you are found not to have the correct cover at work, you can be fined up to £2,500 per employee per day. Cover will offer protection for legal defence costs, medical bills, and compensation awards. Common types of claims at the office include slips, trips, and falls, where the business is found to be at fault.
Office claim examples
Slip and fall accident
A client enters the office on a rainy day and slips on a wet floor in the reception area due to insufficient warning signage. The client sustains a broken wrist and files a claim to cover medical expenses and compensation for pain and suffering. The claim was later settled out of court for £78,000 as a result of medical expenses, loss of income, and legal expenses to defend.
Damage to a client’s property
A client visits the office with a laptop, which is accidentally damaged by an office employee who spills a beverage on it. The client files a claim to cover the repair or replacement costs of their device. The office policy covered the replacement cost of £2,500 of the client’s damaged property.
Office Contents Insurance
An office will typically house valuable assets, including computers, screens, and other office equipment. A insured event such as a fire, flood, or burglary, can result in extensive property damage. Office policies usually include anything permanently fixed to the buildings in the definition of the building, things like lighting, kitchens and bathroom fittings, anything that can be removed would be considered as contents.
Without office contents insurance, replacing these assets could pose a significant financial burden. Property insurance ensures that repairs, replacements, and related costs are covered. A Specified All Risks section will typically cover accidental damage, loss, or destruction to property. It's also common to have 'all risks' cover your business equipment, such as laptops and bobile phones away from the office.
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Electrical Safety
Office environments pose many electrical hazards such as improperly installed or maintained equipment, overloaded sockets, exposed wires and unlocked electrical panels. Introducing electrical safety practices, standards and requirements will help mitigate these risks to employees and reduce the likelihood and severity of damage to property.
Slips, Trips, and Falls
Consistently one of the leading causes of workplace injuries, slips, trips, and falls continue to be the largest claims made under an office policy. Slippery floors, trailing leads, running, people standing on chairs, can all contribute to slip, trip and fall hazards. It's important to understand these risks and what preventative measures you can take to reduce the risk.
Fire Risk
Having the right fire safety management practices is vital for the safety of your employees., visitors, and the office building itself. Whatever size your building you are legally required to comply with UK fire regulations which includes the completion of a fire risk assessment. If there are 5 or more people employed in the office, the fire risk assessment must be written down.
Workstations
Incorrect use of equipment, such as chairs or screens, or poorly designed workstations can lead to neck, shoulder, back, or arm pain, along with stress, fatigue and eye strain. These can be avoided if assessments are carried out and equipment is set up correctly and good practices are applied.
Manual Handling
In the office environment, the most common manual handling operations are moving boxes, electrical equipment and furniture. Conducting poor manual handling can cause severe musculoskeletal disorders. Many office policies will exclude any manual activities, therefore if your employees will be assist with an office move it's important to speak with your broker first.
Security
A safe and secure office protects your employees, but also your computers and other contents. Claims can arise from thieves, vandals, and arsonists, however opportunistic intruders and accidental damage remains the most commonly claimed peril under the property damage cover.
Is public liability insurance necessary?
Any business that operates a commercial office premises or works from home remotely, should purchase public liability to guard against compensation claims. Public liability insurance for your office protects you if you cause damage or injury to a third party, this could be a customer or someone delivering something to your business. If they fall on an uneven floor, sprain their wrist and are unable to work they may make a claim against you for damages. The cover protects againsts the costs of legal fees and/or compensation paid to the third party. It is often a requirement if your business attends events or if you are hosting workshops at a venue.
What other business insurance cover should we consider:
- Professional indemnity insurance protects against breaches of professional duty when providing a service to your clients.
- Cyber insurance can provide 1st and 3rd party liability protection in the event of a data breach or cyber-attack.
- Directors' and officers insurance will protect the individuals that make decisions on behalf of the company from litigation, investigations and fines.
"There are over 10 million office workers in the UK working in over 200 million square metres of office space. Whether your office is a small room in a shared building or a large corporate office, it will share many of the same risks and hazards. As a business owner you should ensure your office insurance is suitable to cover your potential liabilities and assets."
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Frequently asked questions
Is office insurance suitable for working from home?
In the majority of cases there is no reason why an office policy cannot identify your home address and offer protection whist you work from home. Please speak with a broker to discuss your needs. Some insurers have started to offer specific working from home policies. However, do not rely on potential cover offered under a home insurance policy because any association with a business could cause any claims to be denied.
What other insurance covers can be provided under an office policy?
Specified all risks: Can cover specific groups of items against defined perils (i.e. accidental damage and theft, which also includes incidents that occur away from the office). These items will be defined on the office policy schedule (i.e. laptops, mobile phones or surveying equipment) and will be covered up to a specific value.
Personal accident: Can provide financial support in the event of an accidental bodily injury to an insured person as defined in the office schedule. Benefits will be payable for death or disablement and related medical expenses.
Computer breakdown: Can offer protection for the failure of any computer equipment or computer records. The office policy can provide for costs of modification of the computer equipment or replacement of computer records.
Terrorism cover: Can offer financial protection from damage to property and consequential loss resulting from acts of persons carrying out activities directed towards the overthrowing or influencing, by force or violence, of any government.
Legal expenses cover: Will assist with expert legal advice through a telephone legal advice service. In the event of a claim, the insurance can provide legal representation or unforeseen legal costs in a range of circumstances, typically relating to your property, employment, or contract disputes.
Do we require cover in a shared working/office space?
If you work from a shared working space, the owner or operator of the building should have the necessary insurances in place. However, these may provide limited cover (if any) for your contents and personal possessions. An office policy can offer cover for portable office equipment such as laptops and mobile phones, however they should not be left unattended. If you are frequently working away from your office premises, a policy can offer valuable protection from damage and theft.
What other business coverage do we need?
Different workplaces have varying degrees of risk and the type of business cover you decide to purchase will depend upon your activities, how you operate, and what your exposure is to property damage or loss. The policies will typically bundle different covers for businesses together and provide a cost effective means to protect your staff, assets, and potential liabilities.
Related articles and guides
Small business insurance is a broad term that encompasses various types of coverage designed to protect small business owners from a wide range of risks. These risks can include property damage, legal liabilities, employee-related risks, and more.
Your business will need professional indemnity insurance if you provide a service, advice, consultancy, design, plans or specifications to a client.