You own and operate your business from an office in your own home; surely there is not much need, if any at all, for office insurance? Even with such an apparently modest business setup, however, skimping on office insurance can leave the uninsured or underinsured business owner facing potentially very heavy and unexpected bills.

Whether you work from home, have your own commercial premises or rent the office space from a landlord or client, there are a number of risks and liabilities you assume the moment you begin to operate your business. A checklist of the features most commonly incorporated into office insurance, therefore, is likely to include the following:

Public liability – any client, customer or member of the public who suffers an injury or loss or damage to his property whilst in your office (or whilst you are going about your business) can claim that the fault is yours and that you are therefore liable for the damage or injury caused;

Professional liability – if your office-based business involves the sale of your specialist skills or knowledge, then you are also likely to have considered the benefits of professional indemnity insurance. This will provide you and your business with financial cover against claims of negligence or other mistakes and errors in your work for clients;

Employers’ liability – there may not be many of them, but if your business has employees other than yourself (or immediate family members), you are typically legally required to have insurance up to a minimum of £5 million to cover your liability for accidents, injuries or even death suffered by an employee as a result of working for you. Failure to arrange such cover could face you with a fine of £2,500 for every day that the insurance is lacking;

Contents – even the most modest office setup these days can contain expensive computers, telecommunications and related equipment. An “all risks” contents policy will also ensure that portable equipment, such as laptops, other hardware and tools, are covered even when taken away for use outside of the office;

Legal fees – if there is one thing destined to be a rapid drain on even the most successful business, it is the need to fund expensive legal defences or other action. An investigation of your business finances by the Inland Revenue, for example, could mean your needing to foot a costly bill for legal expenses. The appropriate office insurance could indemnify you against such costs;

Business interruption – the theft of vital equipment from your office or damage to the premises by fire or flood could mean that business comes to a grinding halt. Business interruption insurance would protect you from the financial losses incurred as a result;

Office insurance – many insurers will be able to offer a complete package of cover for these and other risks and liabilities faced by your particular type of business. A specialist insurance adviser will be able to guide you through the various options, point you in the direction of reliable providers and answer your questions on any other areas of office insurance relevant to your particular business needs.

Tags | Office insurance