Protection against potential losses
As a business you need to protect against potential losses taking into account your assets, business income, statutory legal requirements and potential claims from third parties.
An office policy consists of 3 main elements to provide this safeguard:
- Buildings and contents insurance to protect the premises and equipment.
- Public and employer’s liability insurance to cover possible claims caused during the course of your business activities.
- Business Interruption insurance to protect your business income should you have to stop trading for a period of time as a result of an insured event.
Office Insurance Explained
Public Liability – Covers injury or damage caused to a third party, either at your premises or in the course of your business activities.
Employer’s Liability – Covers your legal liability against possible injury to your employees occurring during the course of your business activities.
Office Buildings Insurance – Buildings insurance is only necessary if you own the property. Any improvements you make to the property such as partitioning, or the cost of decorating needs to be added to your policy as tenant’s improvements.
Business Interruption – If your business suffers an insured loss (such as fire or flood) this covers you to continue paying fixed overheads and other expenses that you need in order to keep your business running until the property claim is resolved. It also protects your gross profit. As an office insurance risk you need to estimate the maximum fee income the business will earn in the 12 months following a potential loss. The indemnity period is the amount of time you can claim for business interruption costs after a loss occurs. This is normally a minimum of 12 months, but can be extended to 24 months or more, depending on your circumstances. It is possible to cover increased costs of working only, if you feel you could be up and trading right away at temporary premises.