An office fire can turn a carefully planned business setup into an unexpected financial burden. The impact is not limited to the physical premises. Equipment, furniture, electrical installations, fittings, and other business property can also need to be assessed when arranging cover. That is why choosing fire insurance for office property requires more than looking at the amount of cover available. You need to consider what is being insured, how its value is assessed, and which policy terms apply.
What Does Fire Insurance for an Office Usually Address?
Fire insurance can provide cover for specified property against fire and other perils listed in the applicable policy. For an office, this could relate to the building, its contents, or both, depending on what you own, occupy, or are responsible for and the terms of the policy. The scope of cover therefore needs to be considered alongside the property being insured and the conditions set out in the applicable policy.
Which Office Assets Should You Consider?
Before reviewing fire insurance for your office, make a list of the property kept at the premises.
- Building and fixed fittings: If you own the premises, consider the building components and permanent fittings that form part of the property.
- Furniture and fixtures: Include desks, chairs, partitions, counters, storage units, and other office furniture.
- Electronic equipment: Account for computers, servers, networking equipment, printers, appliances, and other business equipment.
- Documents and records: List important physical records separately and check whether the applicable policy provides cover for them.
- Other contents: Include other property kept at the premises and used for business purposes.
How Should You Assess the Value of Your Office Property?
Your asset list is only useful if the values attached to it are current. An office can change considerably after a renovation, technology upgrade, expansion, or purchase of new equipment.
Before selecting a policy, review:
- The value of major equipment and furniture
- Any changes made to the premises
- New assets purchased since the previous policy
- The basis used to determine the value of the property
- Whether different categories of property have separate sums insured
Which Policy Details Should You Compare?
Once you have identified the property you want to insure, turn to the terms that determine how that property is treated. Pay particular attention to these areas:
| Policy Detail | What to Check |
| Property covered | Check whether the assets you have listed are specified under the policy |
| Sum insured | Check how the sum insured is determined for the property being insured |
| Covered perils | Check the events against which the policy provides cover |
| Exclusions | Read the exclusions to understand which circumstances or types of loss are not covered |
| Conditions | Note any conditions that apply to the cover, including those relating to the insured property |
What Changes Should Prompt a Policy Review?
An office policy should not be treated as something you set once and forget. Your premises and assets can change during the policy period or at renewal.
A review can be useful when you:
- Move to another office or add a new location
- Purchase expensive equipment
- Renovate or alter the premises
- Add new business assets
- Change how the premises are used
If your business operates from rented premises, also consider the distinction between property belonging to the landlord and property belonging to your business. The relevant policy interest and terms should be checked rather than assuming that the same cover applies to both.
Conclusion
Choosing fire insurance for office property becomes easier to assess when you begin with the assets that actually need to be considered. Their value, ownership, and use can all affect how you review the applicable cover. From there, look closely at the property covered, sum insured, covered perils, exclusions, and policy conditions. Taking these details together gives you a more informed basis for assessing whether the policy terms suit the property you want to insure.
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