Get the Best Office Insurance September 2024
Did you know that every year more than 800,000 new businesses start in the UK? One of the aspects that people may forget about setting up a new business is getting the right insurance. Even if you are intending to work from home it may be worth investigating whether an office business insurance policy could help protect the equipment you use in your work. For bricks and mortar offices, office insurance is essential to be sure that you are protected from compensation claims and that your office can continue to run whatever unforeseen events might happen.
In this guide, we take you through reviews of some of the leading business office insurance providers in the UK and explain how office insurance works and what it covers.
Ageas office insurance review: the flexible choice
Ageas is an international insurance company founded as AG in 1824. They have over 4 million customers in the UK and also provide home and car insurance. Their customer lines are open 7 days a week 24/7. You can buy Ageas office insurance through a broker. Claims can be made through their online portal using a simple form.
Pros
- 24/7 helpline
- Flexible policy allows you to change your policy as your business grows
- Personal accident coverage
- Legal coverage
- Product liability included
Cons
- Can only be bought through a broker
AXA office insurance review: for multiple locations
AXA are a massive multi-national insurance company working around the globe. AXA's office insurance can insure up to 10 locations and can be bought for 300+ types of business. There is automatic coverage for stock deterioration up to £5,000 and accidental damage is included as standard.
Pros
- Max turn over £8 million
- Accidental damage included
- Stock deterioration covered up to £5,000
- Can cover up to 10 offices of the same business
- 300+ types of businesses covered
Cons
- Does not cover data loss
Hiscox office insurance review: for high value contents
Hiscox is a specialised insurance provider founded in London in 1901. Hiscox offers a combined set of insurance policies to cover your office, with a wide range of add-ons. Hiscox office insurance is flexible and has specialist covers, such as high-value contents (for example, in-office artworks). Hiscox also offers unlimited policy changes so that your insurance can change and adapt as your business grows and evolves.
Pros
- Flexible policy with no limit to the number of changes
- Wide-range of add-ons
- Specialist coverages such as high-value contents
Cons
- No cyber security coverage
Zurich office insurance review: the best cyber protection
Zurich is a Swiss insurance founded in 1872 and one of the largest insurers in the world. In 2022, Zurich won a 5-star eTrader rating for its transparency of service and responsiveness to customer queries and claims. Zurich offers a virtual online line consulting service that helps identify risk and head off problems before they become a reality. It offers cyber security coverage and cyber forensic services up to a value of £50,000 to help you identify weaknesses if you suffer a data breach.
Pros
- Very positive customer reviews
- Good pay claim rate
- Virtual risk assessment tool
- Cyber fraud covered and cyber forensics offered
Cons
- Can only be bought through a broker
RSA office insurance review: for home offices
RSA was founded in 1996 in London, however, its roots go back to the Sun Insurance company which was founded in 1706 and is one of the oldest in the world. RSA office insurance offers a range of coverage levels and a specific policy tailored for home offices. It offers money coverage and goods in transit protection as standard. It has electronic equipment protection as an add-on.
Pros
- Home working option
- Simplified documents
- Free 24-hour helpline
Cons
- Bad customer satisfaction rate
- Poor rating on Trust pilot
What is office insurance?
Office insurance is a type of business insurance that protects your business, your employees and the physical buildings and contents of your workplace. Some office insurance policies will protect against loss of income, for instance, if something unforeseen forces your office to close.
If your business provides a service or offers advice then your office insurance may include reputation protection. This will cover the legal expenses and costs incurred if you are forced to fight a legal case against your business. For example, if you run an architecture firm and a complaint is brought against you that you gave bad advice, reputation insurance would pay the cost of fighting that claim and thereby protecting your reputation.
Do you need office insurance?
You are required by UK law to have employer's liability insurance if you have at least one employee. This covers compensation due to employees if they are injured while working for you.
Good to know
In the UK the minimum required cover for employer's liability insurance is £5 million.
If you have members of the public visiting your offices (that is, anyone not covered by employer's liability insurance) then we strongly advise you to have public liability insurance. This covers compensation if a member of the public is injured or their property is damaged in your office.
If your business is service-based then professional indemnity insurance could be a smart investment. If a client claims that you have given them negligent advice that has caused them to lose money or that the service you provided was inadequate then professional indemnity insurance will protect your business from having its reputation damaged. Some industry regulators require this type of office insurance before they will license a business.
What does office insurance cover?
Office insurance is often a mixture of business and buildings insurance though some policies can be more specific if your office has particular needs. In the table below we have outlined and explained the usual coverages that come with an office insurance policy.
| Coverage | What it protects |
|---|---|
| Employer's liability insurance | This covers compensation if an employee is injured or their property is damaged in the office. |
| Public liability insurance | This covers compensation if a member of the public (that is anyone not covered by employer's liability insurance) is injured or their property damaged in the office. |
| Professional indemnity insurance | This pays the cost of protecting your reputation or if you are sued by a client to whom your business is accused of giving faulty or negligent advice. |
| Building coverage | This covers any damage done to the building in which the office is situated. This only applies if the policyholder owns the building. |
| Office content insurance | This protects office equipment and tools such as computers, office furniture and tools in case of fire or theft. |
For example
Let's take an example: Fiona has an architecture firm whose offices have been damaged in a fire. Unfortunately, a member of staff and a client were having a meeting when the fire started and both suffered smoke inhalation. Employer's liability insurance will cover compensation for the employee. Public liability insurance will cover compensation to the client. Building coverage will cover the cost of repairing the building. Office content insurance will replace the damaged computers and desks.
What does office insurance not cover?
Always remember when buying insurance to read your contract carefully and twice, you should pay particular attention to the list of exclusions to avoid any unpleasant surprises later on. Most basic office insurance policies, however, will not cover the following.
- War
- Terrorism
- Damage or loss as a result of policyholder's criminal activities
- Damage or loss of equipment at another site
- Injury to an employee at another site
- Legal expenses unrelated to compensation
Watch out!
Typically, office insurance policies will explicitly exclude interruption to business coverage due to Covid-19. Make sure to check with your broker when purchasing if the policy you are buying excludes it.
How much office insurance do you need?
The amount of office insurance you need will depend on the specifics of your situation. Is your office in an area with a high risk of theft and burglary? If you own the building, is it in a flooding zone? If you have customers on the premises then you need to make sure then there is adequate protection in place in case you have to pay out a compensation claim.
Your annual turnover will also affect how much coverage you need. If a travel agency with three employees has to shut down for a week due to road works, then the business will probably survive. A 200-employee software company, however, might want to have business interruption insurance in order to make sure that lost revenue caused by unforeseen circumstances does not derail its finances.
What office insurance extras are there?
You may want to take out extra coverage in order to best protect your office and your business. Some insurance providers include these extras as standard, other insurers allow you to purchase them as add-ons. We have laid out the most common office insurance extra coverages in the table below and explained how they work.
| Coverage | What it protects |
|---|---|
| Cash insurance | f your office handles large amounts of cash, or makes regular cash delivery trips to the bank this extra coverage could protect that money. |
| Business interruption insurance | This compensates you if you are unable to run the business if for example the building is damaged or you are forced to close the office. |
| Legal cover | This will cover any legal fees that are not due to a compensation claim. If for example the business is being sued. |
| Manual work away | This covers employee compensation if they are injured while working for the business, not in the office. For example, if they are visiting a client. |
| Portable equipment | This covers office equipment if it is damaged while an employee is working for the business, not in the office. For example, if they are visiting a client. |
| Terrorism | Most policies exclude terrorism, however, some insurance companies will allow you to purchase extra coverage if your office is situated in a high-risk area. |
How much is office insurance?
The cost of your commercial office insurance will depend on the type of business you run, the location of your office and the number of employees you have. It will also depend on whether you want the most basic, mandatory form of insurance or whether you need more comprehensive protection. If you own, or your company owns, the building in which the office is located you will also need to have building and office contents insurance. If the employees from your office regularly make calls to clients away from the office you may want to have some off-site protection too.
In order to give you a rough understanding of the cost of office insurance, we have put together a table of estimations below by coverage, imaging a small business of about three employees requiring the minimum level of coverage.
| Coverage | Average monthly premium cost |
|---|---|
| Public and products liability insurance | £13 |
| Employer's liability insurance | £11 |
| Professional indemnity insurance | £7 |
| Office equipment insurance | £4 |
| Legal expenses | £3 |
| Personal accident | £18 |
Can I get home office insurance?
If you are operating an office out of your home you should closely read your home insurance policy. Many policies have exclusions if a business is run out of a home. This will particularly apply if your office contains expensive, or specialist equipment in which case you may want to purchase extra contents insurance.
If you have employees working for you from your home then, as with online shop insurance, you will need to have employer's liability insurance. If you have customers visiting you at your home, it is highly advisable to also have public liability insurance. The same applies to garden office insurance.
Do you need office insurance if you use a co-working space?
The owner of the co-working space will have contents insurance in place in order to protect any equipment (that you have agreed) to have there. You may want to read the co-working space's policy on keeping laptops and other equipment there overnight to check that you are covered.
If you are using a co-working space as your office for a services-based company or one that sells advice then you may still want to consider having professional liability insurance as the co-working space's insurance will not cover if a client loses money or decides to sue.
How to find a cheap office insurance quote?
The best way to find cheap insurance for offices is to use online comparison tools. At the top of this page, there is a free-to-use comparison tool which will allow you to compare the protections offered by leading insurers.
