It’s fair to say that office insurance isn’t the most exciting part of running a
business. But when something goes wrong (a burst pipe, a stolen laptop, a slip
in reception) it quickly becomes the most important. The good news is that
office insurance in the UK doesn’t need to be expensive or full of small print you
don’t understand.
In this guide, we’ll explain what office insurance is, what it covers, and how
much office insurance costs in real terms. We’ll also clear up common
misconceptions and help you choose cover that fits your business, not the other
way around.

Understanding Office Insurance: What It Is and Why It Matters

Office insurance covers businesses that rent or own office space against
everyday risks like fire, flooding, theft and liability claims. It applies whether
you’re a freelancer in a shared workspace, a startup in a serviced office, or a
landlord managing an entire office block.

Office insurance isn’t one single policy. It’s usually a package of covers that
protect:

• Your building or office unit
• Your contents and equipment
• Your legal responsibilities
• Your income if your office can’t operate

Why does this matter? Because even minor incidents can cause major
disruption. A broken window can pause trading. A fire alarm fault can force
closure. A single injury claim can spiral into legal costs. Office insurance exists
to keep problems manageable, financially and operationally.

Key Types of Office Insurance Coverage

Property Insurance: Protecting Your Office and Equipment

Commercial property insurance protects the physical things your business relies
on. That includes buildings, fixtures, fittings, furniture, IT equipment and office
contents.
If you own the building, buildings insurance protects the structure itself.
If you lease, you may still need cover for contents and any improvements you’re
responsible for.
Commercial let insurance plays a key role for landlords and property owners. It
protects offices, shops, warehouses and multi-tenure properties from damage
caused by fire, flood, vandalism or theft. Importantly, it can also cover loss of
rental income if the property becomes unusable after insured damage.
If a property is empty, standard policies often won’t apply. Unoccupied
commercial property insurance is essential for vacant offices, as empty
buildings face higher risks and stricter conditions.

Liability Insurance: Covering Accidents and Third-Party Claims

Public liability insurance covers claims if someone is injured or their property is
damaged because of your business. In an office environment, that could be a
visitor tripping on a loose cable or accidental damage during a meeting.
Employers’ liability insurance is legally required if you employ staff. It covers
workplace injuries and illnesses. Even a small team needs this cover, and the
penalties for not having it can be extreme.

Business Interruption Insurance: Safeguarding Your Income

Business interruption insurance protects your income if your office can’t
operate due to insured damage. It can replace lost revenue and cover extra
costs like temporary relocation or emergency repairs.
This cover often gets overlooked, but it’s one of the most practical protections
available. It helps businesses stay afloat while things get fixed.

Optional Coverage: Cyber, Legal Expenses and More

Modern offices depend on technology. Cyber insurance helps protect against
data breaches, ransomware and system outages. Legal expenses cover
supports disputes with employees, suppliers or regulators. Depending on your
setup, you might also consider terrorism cover, ID fraud protection or
professional indemnity.

How Much Does Office Insurance Cost?

The cost is usually the first question business owners ask, and the answer
depends on your risks.

What Affects Office Insurance Prices?

Office insurance costs vary based on:

• Location of your office
• Size of the premises
• Number of employees
• Value of contents and equipment
• Type of business activities
• Coverage limits and add-ons
• Excess levels

Higher-risk industries, larger teams and higher limits naturally increase
premiums. Urban locations and flood-risk areas can also affect pricing.

Average UK Office Insurance Costs

Here’s a realistic snapshot of what many small and medium businesses pay:

Type of Cover	Typical UK Cost
Public liability insurance	£65–£120 per year
Employers’ liability insurance	£100–£225 per year
Office contents & equipment	£15–£48 per month
Combined office insurance package	£15–£50 per month

For many businesses, the answer to how much does office insurance cost is far
lower than expected, especially when policies are tailored properly.

How to Reduce Office Insurance Costs

You can keep costs sensible by:

• Valuing equipment accurately (over-insuring costs more)
• Improving security and fire protection
• Choosing a realistic excess
• Bundling cover instead of buying separate policies
• Reviewing policies annually

Cheap insurance isn’t helpful if it doesn’t pay out. Smart insurance balances cost
with meaningful protection.

How to Choose the Right Office Insurance Policy

Start With Your Actual Risks

Begin by asking simple questions:

• What do I own?
• What am I responsible for?
• What would hurt most financially if it went wrong?

This approach avoids buying cover you don’t need while protecting what
matters most.

Compare Policies Properly

Price matters, but it’s not everything. Look at:

• What’s included as standard
• What’s excluded
• Claim limits and excesses
• Claims handling and support

A cheaper policy that excludes key risks can ultimately prove more costly.

Ask the Right Questions

When speaking to an insurer or broker, ask:

• Does this policy cover my exact setup?
• Are unoccupied periods included?
• What happens if my business grows?
• How quickly are claims handled?

Clear answers now prevent frustration later.

Common Misconceptions About Office Insurance

“I Don’t Have a Shopfront, So I Don’t Need Property Cover”

Even without a physical storefront, businesses still face risks. Laptops get
stolen. Fires start. Equipment fails. Personal insurance usually excludes
business use, leaving gaps that commercial coverage fills.

“Public Liability Covers Everything”

Public liability only covers third-party injury or damage. It won’t cover cyber
attacks, employee injuries or loss of income. Assuming one policy does
everything is one of the most common reasons businesses find themselves
underinsured.

Protecting Your Business: Office Insurance Best Practices

Good office insurance isn’t set-and-forget. Review your policy whenever:

• You hire staff
• You move offices
• You buy new equipment
• Your business activities change

Keep records of assets and improvements. Tell your insurer about changes. This
keeps cover accurate and claims straightforward.

Conclusion: Making Informed Decisions About Office Insurance

When you understand what office insurance is, how much to insure office
space, and what cover actually applies to your business, decisions become far
easier.
The right policy protects your premises, your people and your income without
unnecessary extras or hidden gaps. Policy Powerhouse specialises in tailored
insurance solutions for both standard and non-standard commercial properties,
using experienced insurers and a straightforward process that respects your
time.
Because when insurance works properly, you barely notice it. And that’s exactly
how it should be.