“Business insurance” can consist of dozens of different policies — from commercial equipment insurance to cybersecurity coverage. Your business’ needs depend on its unique circumstances and industry.
Office insurance, however, is critical for any business that has a physical office or location. Even with remote work becoming the new norm, office insurance remains relevant as COVID-19 dies down and many of us return to the office.
In this article, I explain some of the policies behind office insurance and why they’re essential.
Commercial property coverage
Property insurance is fundamental to office insurance. It protects your business against losses resulting from a fire, theft, vandalism and more. If you’re leasing an office space, commercial property insurance may be a condition to your lease. Regardless, the right policy can save you thousands (and possibly millions) in unforeseen expenses if something bad happens.
When purchasing property insurance, ensure you’re not underinsured. You want a policy that covers most or all of your property’s value. This may mean getting an appraisal of the value of your office space and the contents within it. Dealing with an office fire is stressful. Finding out you’re underinsured for the damages makes it significantly worse.
Another vital aspect of commercial property coverage is what your policy covers. Some policies may insure the content within your office in addition to the physical building. If your commercial property insurance doesn’t cover the contents of your office, you should consider additional coverage such as equipment insurance.
General liability coverage
Liability coverage protects your business in case someone or something is injured or damaged while at your office. For example, a visitor trips over a cord and injures themself or the laptop they were holding. If that visitor sues your business, general liability insurance will pay for the related legal fees and damage awards.
General liability insurance further allows someone injured at your office to receive compensation without ruining your relationship. The injured person is ultimately suing your insurance company for compensation and not your business. Without general liability insurance, you may end up in a bitter legal dispute with a partner or client, which could end your working relationship with them.
Business interruption coverage
For some businesses, having an office is mandatory. There might not be an option to work remotely. Take for instance, hardware engineers or scientists who can’t simply take their work home. If your business pauses its operations because you’re left without an office, it could mean lost revenues and opportunities and additional expenses.
A business interruption policy can soften such a blow. This insurance compensates for some or all of your business’s lost income in the periods when you can’t operate. This can ultimately mitigate your risks if your office space isn’t available for use due to a fire, flood, or another disaster.
We generally trust our employees and the people we work with, but they can sometimes betray our trust. Crime insurance can protect your business if it incurs unexpected expenses due to employee dishonesty, theft, robbery or burglary, or fraud.
If an employee or someone else steals valuables from the office and equipment insurance doesn’t cover such a loss, crime insurance can likely cover it. Additionally, crime insurance can provide compensation if someone uses your office for fraud and your business incurs expenses as a result.
Commercial property, general liability, business interruption, and crime insurance are four of the common policies that comprise office insurance. Your business’s office insurance needs ultimately depend on its unique circumstances. A broker with experience in your industry can help educate and advise you on the policies best for your business.