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Office Insurance Policy: 7 Key Things You Should Know [2021]  

office insurance policy

You may aware that business will face various kinds of risks that have an impact on the earnings. So, it is better for you to covered by a comprehensive office insurance policy before any unexpected events.

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An office insurance policy is a great option for you to overcome various kinds of risks in running the business in a safe manner. There will be absolute peace of mind when you buy the most appropriate business insurance policy.

What is an office insurance policy?

Various contingencies in running the day-to-day affairs of your business will be borne. It may be done with the help of the office insurance plan. It will cover your office building and the contents of the business premises.

You may find various kinds of risk factors which are covered by the office insurance policy. It may include fire & special perils, assets, building and incidental stocks.

Moreover, it also covers mechanical & electrical breakdown, breakage & burglary, gadgets, mechanical and electrical installations.


In fact, the coverage also includes electronic appliances, insurance of money, fixed glass & sanitary fittings. Furthermore, it also covered public liability, legal liability, employer’s liability, and personal accident liability.


  1. It protects your office against natural perils – Your office premises will be protected from fire, earthquake and other natural disasters. Huge loss can be prevented by subscribing to a suitable insurance plan.
  2. Coverage of burglary & theft-related issues – There are various kinds of burglary and theft –related issues with the office insurance policy.
  3. Coverage of dishonest acts of employees – The employee’s insincerity or disloyalty may lead to a great loss. So, the loss can also be covered by the insurance provider.
  4. Fixing glasses and housekeeping services – The expense involved in fixing the glasses and housekeeping services after the damage will be borne by the insurance company.
  5. Accidental death or dismemberment of employee – Employees will be covered against death or dismemberment. The insurance company will provide special assistance to the insured.
  6. Loss of baggage of employee – There may be a loss of baggage of employee when he is undertaking the official trips. The loss will be borne by the insurance company.
  7. Protection of publicity aids – Various kinds of publicity means are also employed by an insurance company. It includes neon signs, and hoardings to get protection from fire, theft, explosion, flood, and lightning.

Advantages of office insurance

You can buy office insurance plan by customizing it as per your needs. Various kinds of risks can be covered with a single package policy.

  • The coverage includes buildings, furniture, fixtures, and fittings. It is possible to include electrical & electronic equipment, laptops, and mechanical equipment.
  • Customization – The insurance policy can be customized as per your needs. Various kinds of add-on options are also available. It may include theft, burglary, earthquake, electronic equipment insurance, and laptop insurance.
  • Easy documentation – You can buy an office insurance policy as per your needs. The insurance specialists will help you choose the most appropriate insurance policy after assessing your insurance requirements.
  • Sum assured – The ‘sum assured’ for fire and other kinds of perils should be self-declared. For electronic gadgets, complete information should be provided such as the make & model of the vehicle, serial number, and other parameters.
  • Personal accident coverage – Your office insurance policy will cover personal accident as well. The accidental death or bodily injury will be covered by the insurance policy. As per the terms and condition of the policy, the insured will get medical extension also.
  • Legal liability – There will be a legal liability to employees during the service or after leaving the organization.

Coverage of office insurance

Office Insurance plan will cover various kinds of risk factors.

  • Risks & perils such as fire, lightning, and natural catastrophes
  • Malicious damage, riots, and strike
  • Mechanical & electrical breakdown
  • Burglary
  • Storm
  • Tempest
  • Flood and inundation

You can subscribe to various kinds of add-ons to enhance the power of office insurance plan.

The following add-ons are useful:

  • Earthquake
  • Terrorism
  • Theft
  • Rent for alternative accommodation

You can include any other risk factors after consulting the insurance company.

Third party coverage

The third party coverage extended by the insurance policy is the biggest advantage. Various kinds of risks will be included under a single policy.

It is possible to subscribe to a cost-effective office package policy with which the entire office property can be protected.

Add-ons with office insurance

Various kinds of add-ons can be included with the office insurance policy. Some risk factors are not available with the standard office insurance policy. So, you can include them also by choosing add-ons.

The add-ons offered by an insurance company vary from one insurance company to another insurance company.

The following are some of the add-ons that you can subscribe to enhance the risk coverage of your business:

  • Public liability – The damage or loss to the business due to public litigation can be overcome by choosing a public liability rider.
  • Cash in safe – The cash in safe will be protected by the office insurance policy. You should abide by the insurance company’s terms and conditions. The business should take concrete steps to protect the cash by all means. However, if there is a loss of cash in the safe, the insurance company will investigate the issue and suitable compensation will be paid to the insured.
  • Money insurance – The money will be covered while in transit from the business premises to the bank or from the bank to the business premises. It will also cover a till at the business premises.
  • Fidelity cover – If there is a loss to the business due to the disloyalty of employees, the insurance company will pay compensation to the insured.
  • Plate glass – If there is damage to fixed plate glass due to an accident, then it is also covered by the insurance policy. The add-on cover will include the sanitary fittings as well.
  • Neon sign – Neon signs and hoardings will be covered by the insurance plan.
  • Rent for alternative accommodation – Due to accidents and perils, the existing premises might be damaged. If you are moving a business to a new location, the insurance company will pay additional rent.
  • Breakdown of electrical equipment – The breakdown of mechanical or electrical equipment will be covered by the insurance policy. The policy will cover appliances as well.
  • Loss of baggage – The loss of baggage of specified employees who are on official duty will be covered by the insurance policy.


The insurance company will not cover certain risk factors and you should be aware of those risk factors.

  • Normal wear & tear of machines – The insurance company will not cover the normal wear and tear of machines and various kinds of equipment.
  • Intentional damage – If it is proven through the investigation that the damage took place due to deliberate action, the insurance company is not liable to pay the compensation.
  • Illegal activity – If the business is found to conduct illegal operations, the insurance company will not pay damages.
  • Pollution – The damage due to pollution will not come under the office insurance policy. Due to contamination, there will be large-scale damage to public property and health of the public. The business should take pro-active steps in tune with the guidelines of the local government.
  • Radioactive contamination – If there is radioactive contamination, it will lead to great loss of life. The loss may spread from one generation to another generation. However, they are not covered under the office insurance policy unless you subscribe to a special add-on or mention it in the insurance policy.

Who can opt for office indemnity insurance plan?

Office indemnity insurance policy can be subscribed by various kinds of small and large businesses. If large corporate involves in international business operations, the possession of D & O insurance policy is mandatory.

You can subscribe to a comprehensive office indemnity insurance policy so that all kinds of risk factors will be covered with a single policy.

The following business establishments can go for office indemnity insurance plan:

  • Government offices
  • Commercial offices
  • ITES and BPOs
  • Software Development companies
  • Manufacturing companies
  • Processing industries
  • Warehouses

Every business will face various kinds of risks. There are risks associated with different stakeholders. The lawsuits filed by customers or clients will be very expensive.

By buying the right kind of insurance policy, the business will be able to conduct operations without any difficulty.

The financial loss due to compensation under various heads can be managed with the help of the insurance policy. The insurance policy will stand with you in times of trouble and there will be great peace of mind.


Office insurance policy will give great protection to various kinds of businesses. Before subscribing to the policy, you should assess your risk factors.

If you get a quotation from two or three reputed general insurance companies, you can analyze the features and price and it is possible to settle for the best office indemnity policy.

You should also choose a reputed company which maintains a good track record in offering best solutions to customers and settling the insurance claims.

So, let us know whether you have insured your business or not in the comment. Which insurance company you have chosen?

If you like this post, then do share it on your social networks.


Published on: Jan 05, 2019

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