You can use office spaces to meet clients or collaborate with colleagues. Or, you can simply have a quiet place to run your company. However, having an office can also be a liability. Offices often contain valuable business assets like inventory and equipment. Business owners may also be responsible for personal property damage or third-party injury that occurs in their offices.
Many small business owners have insurance policies for their office spaces. This type of insurance covers both commercial property and general liability. It can help ensure your business’s longevity by offering compensation and coverage for costly (and unexpected) events.
What is office professional insurance?
Insurance that covers offices is called office insurance. It may include coverage for commercial property damage and business assets like inventory and equipment. Additionally, general liability coverage can be provided for injuries on the premises.
What does office professional insurance cover?
Below are the most common coverages included in an office insurance package. Note that not all coverage will apply to every business type. You may also need additional coverage that is not listed below.
Commercial General Liability Insurance
CGL protects you and your business from third-party claims for bodily injury or property damage. A client can trip over a badly placed doormat at your reception or spill a hot beverage on the client’s carpet during a sales visit Commercial General Liability Insurance typically covers medical and legal expenses regardless of the outcome of a lawsuit es.
Commercial Property Insurance
Commercial Property Insurance provides important protection, regardless of whether you own, lease, or manage your office space. Commercial Property Insurance protects your office contents against insured events like fire, theft, flood, and other disasters. In business interruption coverage, income lost due to a covered loss is reimbursed.
You may also be eligible for rent or electricity coverage during a business interruption. Commercial Property Insurance may also cover the cost of replacing the carpet and computers.
You may have had to shut down your business for a while for these repairs to occur. Your business interruption coverage may cover the cost of running your business while you are closing.
Professional Liability Insurance
While not directly protecting your office’s assets, Professional Liability Insurance is an important option that can protect you if you offer advice or services for a fee. It provides financial protection against claims that your services were inadequate or, in turn, caused a negative outcome for your client.
Learn more about E & O Insurance with EasyCover to ensure your business is protected.
Who needs office professional insurance?
Any business working in an office environment needs a comprehensive office insurance policy. This category covers various businesses such as commercial offices, dental offices, home offices, and Legal offices.
Insurance packages for offices are tailored to cover the risks associated with your business. You can be sure that you will get the coverage you need.
What isn’t covered by office professional insurance?
Most office space insurance covers property damage and liability. The following are generally not covered by insurance for office spaces:
- Commercial vehicles are at risk of being damaged or the liability for auto accidents that result in injuries
- Employment claims such as discrimination and wrongful termination suits
- Negligence in professional services
- Employee injuries
- Compensation for income lost due to a business interruption
Depending on the business model you have, you might also be interested in coverage for these types of incidents by purchasing add-ons to or separate policies.
- Protect commercial vehicles with commercial auto insurance
- Handle all possible employee claims with workers compensation insurance
- Protect yourself from negligence claims with professional liability insurance
- Secure your business and employees with business interruption insurance
What to avoid while filing office professional insurance claims?
1. Waiting too long to file the claim
Your insurer should be contacted immediately if your store or office is damaged by theft or a natural disaster. You must file your insurance claim within 48 hours of the incident. Insurers may refuse to pay damages if your claim is not filed within 48 hours.
2. Not documenting damages
It is best to take photos of the damage if you must move business equipment or during any business operation. You can document the damage to request compensation. The insurer will also be able to see the extent of the damage.
3. Neglecting reading the insurance policy
Small business owners often make the common mistake of thinking that their insurance policy will cover all damages. Your insurance policy might not cover flooding damages, even though your area is susceptible to these disasters. To ensure full coverage, you will need to purchase a flood insurance rider.
4. Accepting baseline compensation
Small businesses may find it difficult to accept baseline compensation. You could appeal if the settlement offered by an insurer does not meet your expectations. A third-party claims adjuster can assess your damages and help you explore all options for a refund.