What is the purpose of office insurance and where does it apply?May 22nd, 2018
Office insurance is a business essential. It provides protection in the event that something happens to a key part of the enterprise, whether that’s the people, equipment or premises. Plus, with business insurance there is a safety net for unpredictable events, from interrupted trading through to injured customers.
When is office insurance necessary?
Any business operating an office from commercial premises will benefit from having an office insurance policy in place. Office insurance is as necessary for a single, small office as for a group of companies with multiple premises.
What does office insurance cover?
Staff injury or damage
Employers liability insurance is a legal requirement for most businesses. This will provide cover in the event that you need to compensate an employee who has been injured whilst under your employment. This could be regular staff, volunteers or interns.
The structure of the premises
When you own the office that you’re working from buildings insurance is essential to cover the cost of repairing damage or destruction. If you’re renting then the landlord will cover the cost of this insurance but if you make substantial changes to the premises (such as installing a new kitchen) then this may need to be added to your insurance.
Everything inside the premises
Items in the office that are fixed will be covered by buildings insurance but, for everything else, contents insurance is necessary. This will cover everything, from equipment such as computers through to furniture, stationary supplies and any stock that you have on site. It’s important to ensure that you update a business contents insurance policy if anything changes – for example if you buy a large number of new computers for the office, make sure you notify the insurer so that the items that need cover can be updated.
Visitors to the premises
Even with the most rigorous health and safety standards in place, sometimes accidents do happen. You might be welcoming clients or customers to your office on a daily basis and just one accident or injury from something as simple as a trip or fall could result in a significant compensation claim that damages the business’ cash flow. Public liability insurance will cover your business for loss, damage or injury to a third party that occurs at your offices premises, whether that’s a dropped laptop or a broken leg.
Business interruption insurance provides cover for a worst case scenario in which you’re not able to continue to operate from your office. Your business will still have obligations to pay rent, cover staff wages etc and this can be a tough financial balancing act if the business is not functioning enough to generate income. Business interruption insurance provides the cover to ensure that essential costs are met while the company recovers following damage.
For any business, office insurance will provide back up and essential peace of mind for some of the most common challenges that you might face. Contact Morgan Richardson for help finding the right policy for you.