Office Insurance - Pitfalls To Avoid

When it comes to running a small business, office insurance is something that is very important.  A good, comprehensive office insurance policy will cover your office-based business for most eventualities and mishaps that you can expect to occur from time-to-time, such as damage to office contents, theft of property, business interruption, public and employer's liability.  

However, there are a few pitfalls that you should be aware of in order to ensure that your insurance company pays out in the event that you have to make a claim on your office insurance.  Read on for more information.

Shared office premises

When looking for new office premises, it's important to bear in mind that some insurers will not provide cover for individual businesses that are based in shared office space. 

Those insurers who do offer insurance cover in such circumstances tend to restrict theft insurance to claims that involve forced or violent entry to the premises, rather than simple sneak thefts.  This means that, if your petty cash box or one of your laptops mysteriously goes walkabout without signs of a physical burglary, your insurance company won't cover you for the loss.

Therefore, if you do opt to take on a shared office, you must inform your insurance company, as you may need to change provider if they don't offer cover.

Business activities

Another very important consideration that can cause issues in the event of claim is that of business activities.  In general, office insurance policies only cover work that takes place within the office that is of a clerical nature or is computer-based. 

This means that you and your employees won't be covered if your business carries out any form of manual labour in your office premises.  You may have to take out separate public or employer's liability cover for this.

Office security provisions

One area that often causes problems when claims are made against office insurance policies is that of theft from the office premises.  All office insurance policies will expect a minimum level of security for your premises.  This might stipulate that a deadlock is fitted on the main exit door, or window locks are installed on all externally accessible windows. 

If you don't adhere to your insurer's minimum security stipulations, and there is a break-in, you could find that you aren't covered.  Therefore, it's extremely important that you check your insurance policy for your insurer's security requirements and make sure they are implemented.

In conclusion

Obviously, you hope that you will never need to make a claim against your office insurance policy.  However, it's important to ensure that you are fully-covered, just in case the worst should happen.  Take note of the pitfalls outlined above and double-check your policy to make sure that your business has all the cover you need.