What does an office insurance policy provide for your business?

The need for an insurance cover permeates in every aspect of life, your home, your profession, business and your office. Office Insurance is not a lesser known term for most business entrepreneurs. It pays to insure your office against possible hazards and unforeseen calamities. It could be as simple as damage of equipment to severe losses incurred on account of theft, fire, burglary or any other natural disaster that may cost you a fortune.
To do away with such disasters, insurance companies provide specialized office insurance packages to protect the needs of every business owner.
A typical office insurance policy has the following elements.
 
Public/Product liability: Public liability insurance indemnifies you against claims where the plaintiff might sue you against losses or injury incurred in your office premises. For instance a client pays you a visit and injures himself within your premises. In such a case a public liability insurance policy would cover all legal expenses that you might incur while protecting your business against the claims. In a similar way, product liability insurance covers you against claims made due to a damage caused by usage of your product. This specially applies to manufacturing industry where any defect or spoilage in your goods may cause harm to a third party and bring about hefty compensation claims.
Employers' Liability and Workers Compensation:  An employer is liable to compensate his employee in case the latter succumbs to an injury at workplace. He is liable to pay a hefty sum for medical treatment along with a percentage of his wage on a regular scale. This also applies in case the worker develops an occupational related illness, , suffers disability or permanent physical injury. A disabled employee receives two third of his salary or even more in case he has dependents.
Material damage: A material damage office insurance policy compensates you for all damages incurred in relation to office building, structure and office content including but not limited to computers, printers, telephones, goods, stocks and business records. It covers accidents by storm, fire, lightning, malicious or accidental damage in property. The cover is provided for the cost of repair or replacement of property after making sufficient allowance for depreciation cost.  

Business interruption
Accidental damage in property and office premise may interrupt your smooth flow of business and cost you substantial amount of profit. The policy is made in anticipation of loss that may occur if your business comes to a sudden halt. Usually there is a forty eight hour lag before your business may regain its composure. Business interruption insurance covers you for the profit that you would had earned, had your business not been interrupted. The estimation is made on your available business records. However, most insurance companies do not offer business interruption insurance as a separate package; rather it is offered as an add-on to existing office insurance policy.
In all of the above cases, an office insurance policy indemnifies your organization up to the amount of losses suffered. Most business owners find it imperative to opt for office insurance cover so as to protect the financial, aspect of their business. The need for office insurance embraces every important aspect of an organization and indemnifies the business owner as and when the situation demands.

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About the author

Robert Ellis is a freelance insurance advisor who provides suggestions to clients on various aspects of business insurance. He is associated with Bizcover.com.au and provides guidelines on IT insurance, accounting insurance, professional indemnity insurance, office and business insurance and more.

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