Being a business owner is a dream come true for many. Owning a business offers a sense of pride, accomplishment, and success but it also gives you a reality check that all that glitters is not gold.
There is profit making but a lot of risk is involved too. There are multiple responsibilities on your head including your employee's wellbeing, offering a healthy work environment, competitive salaries, office maintenance and ensuring the best quality products and services. Simply put, you are solely responsible to manage the show. If something goes wrong, you are accountable and answerable to your employees and the public.
Managing an office while taking care of all these risks might seem to be a daunting task. To help you manage all the risks within your office premises in an efficient manner, you must consider an office insurance policy.
Let’s have a quick rundown of the benefits and coverage provided in an office insurance policy.
What is Office Insurance?
Office insurance policy is designed to recompense for the damages, which may otherwise hamper the growth of your company/office. It offers financial protection for any damages caused to your business premises and office contents from perils like fire, explosion, lightning, burglary, housebreaking etc.
Moreover, it covers the damages resulting from natural disasters along with machinery breakdown cover and personal accident protection to the employees.
Why do you Need to buy an Office Insurance Policy?
Elucidated below are the three key sectors of any business that must be protected under an office insurance policy-
- Building and other assets - All the physical assets that you own in your office are included in this one, the first one being the office infrastructure. And the cost of e machinery alone can be worth lakhs or even crores. With an office insurance policy, you can get compensation for any damage caused to your office machinery.
- Employees/Workforce - Employees are an integral part of every organization. With office insurance, you are covered against legal liabilities towards employees, and any loss or damage resulting from the dishonesty of the employees.
It also compensates for any baggage loss while travelling. Personal accident coverage is also provided to your esteemed employees. Workmen’s compensation is also provided as per the Workmen's Compensation Act, 1923 in case of bodily injuries or death caused to employees during the course of employment.
- Outstanding Payments - Not every time in a business you will be earning profits. There are times when your business will not be doing well and you will not be able to able to make the ends meet. In that case, you will be faced with financial liabilities such as rents, employee’s salary etc.
If you are still confused whether an office insurance will be suitable for you or not, then you can look at the policy benefits to help you decide better.
Benefits of Office Insurance
Here’s how an office Insurance policy will have you covered-
- Employers’ Liability Cover - This cover is provided for compensating the employees for any injuries and permanent disabilities that they may suffer. The compensation amount is decided by the insurance company and the damage that is done by the injury.
The compensation is also provided in case of the death an employee or worker will be maximum then followed by the permanent disability and then any other injury. Employers’ liability insurance is provided for each and every worker irrespective of the fact that they are freelancers or full time.
- Customer’s liability Cover - Customer liability feature recompenses and protects you from the lawsuits that might be filed against you by an unsatisfied customer.
- Business Interruption Cover - There are multiple overheads costs of running a business like electricity bills, water bills, property rent, workers’ wages or salary etc. These are the payments that have to be taken care of irrespective of the fact whether you are making a profit out of your business or not. In the times when your business is not earning profits, it will ensure compensation for all these overheads.
- Office Content Cover - There are a lot of valuable items in an office. Most common being the computer systems, fax, printer, laptops, product manufacturing machinery, furniture etc. An office insurance policy compensates for damages caused to any of these resources.
Like any other insurance plan, office insurance also comes with a couple of extensions that can be included in the plan to enhance the coverage. You can further minimize the risk by opting for these additional covers-
- Burglary Cover - It offers protection against burglary and housebreaking with regard to office equipment’s/machinery and contents.
- Money in Safe - It covers loss of money such as currency notes, cheque, money orders, and bank drafts belonging to the business and loss or damage to any cash box or safe, where office money was kept.
- Machinery breakdown - Compensation is provided for unforeseen physical damages due to the mechanical or electrical breakdown of Xerox machines, refrigerators, air conditioners, and the likewise.
- Money in Transit - It covers loss of business money during the transit between the specified locations or business premises.
- Accidental Breakage - It covers the destruction of sanitary fittings, neon signs, and hoardings.
- Public liability Cover - It safeguards you against legal liabilities arising due to accidental bodily injuries caused to a third-party. Damage caused to a third-party property and third-party accidental loss or damage is also covered. The third party can be anyone a client, distributors, employees, a customer etc.
- Baggage Cover - It compensates for any loss or damage caused to the personal baggage while traveling for office purposes.
- Fidelity Cover - Any financial loss resulting due to dishonesty or fraudulent act of an employee.
- Goods-in-transit - It is required for businesses that involve import and export of goods.
What is not Covered in an Office Insurance Policy?
Let’s not leaves anything for imagination or assumption. It is important for you to know what is not covered by an office insurance policy. It is just an overview, and these exclusions may vary from one insurer to another.
- Standard Perils - Any loss or damage caused due to war conditions, nuclear radiations and ionization are not covered.
- Housebreaking or Burglary - The insurer will not be liable to compensate if any of the family members of the insured were involved. It is not applicable to motor vehicles, livestock and pedal cycles.
- Electronic Equipment’s - Any loss or destruction caused due to wear and tear or ant pre-existing fault at the time of policy inception.
- Portable Equipment - Any loss/ damage Loss/destruction caused during the process of repairing, cleaning, and any type of consequential loss are not covered.
- Machinery Breakdown - Damage resulting due to wear and tear and negligence will not be compensated.
- Loss of Money - If the loss is resulted due to the involvement of an employee or use of duplicate keys and counterfeit money, it will not be covered.
- Neon Signboard - Claim will be rejected if the destruction is caused by cracks or scratches. Any damage while replacing or removing the signboard is also not covered in an office insurance policy.
- Workmen's compensation - Any liability arising due to willful non-compliance of statutory provisions, or any fines and exemplary damages.
- Personal Accident - Claim will be invalidated in case of suicidal attempts, self-inflicted injuries and accidents resulting after consumption of alcohol.
- Public Liability - Compensation is not provided for liabilities arising out of willful negligence and penalties.
Hope this article would have helped in ascertaining the need of an office insurance policy to ensure a hassle-free execution of your business operations. Every business owner must consider buying this special type of policy to efficiently manage the business while maintaining the peace of mind. You can minimize the risks by opting for a basic policy or further enhance the cover with some additional covers. So, if you own a business, or have your own office then you must consider buying an office insurance policy.
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