What Is Office Insurance? (Features, Inclusions & Exclusions)
A business owner very well knows that any damage caused to the office building or premises can have adverse effects and disrupt the functioning of the business. Therefore, it is very important to protect the office infrastructure against any unforeseen event.
Office insurance is a comprehensive insurance policy specifically designed to protect organizational infrastructure against unprecedented threats. This policy covers all office premises including manufacturing plants and warehouses.
Let’s dive deeper and understand the inclusions and exclusions under the office insurance.
Inclusions under Office Insurance
- The insurance protects your office in cases of natural disasters like fires, earthquakes, cyclones, and also man-made disasters like mechanical and electrical breakdowns, accidental breakage, etc. Some insurance policies also include damages caused by terrorist activities.
- Office insurance also offers double benefit by covering your employees for accidental death or injury during their employment tenure.
- The policy offers third-party legal liability cover.
- It also provides coverage for personal accident expenses incurred by the organization.
- This insurance protects your office from any loss caused by break-ins, burglary, and theft.
- Natural disasters like earthquakes and cyclones can cause significant damage to your office. The office insurance might cover the expenses incurred for fixing broken glasses and other interiors of the office. Moreover, it also covers the cost of housekeeping services required after the loss.
- The insurance covers not only post-disaster losses but also some pre-disaster safety measures. It covers the costs of putting up precautionary neon signs and hoardings for the safety of employees.
- It provides special compensation in case the insured employees die or suffer injuries or disabilities.
Exclusions under Office Insurance
- The insurance does not cover damage caused by dishonest acts of employees like robberies, fraudulent conversions, insider trading, etc.
- Although office insurance protects the office infrastructure from damages, it does not provide coverage for normal wear and tear and steady deterioration of the building.
- The policy will not cover any intentionally made damages to the office building.
- Any loss caused by war or war-like situations will not be covered. Also, damage due to nuclear or atomic radiation will be excluded from the policy.
- The insurance company will not be responsible to pay for any damages caused by illegal activities.
- In case of fires, if the insurance company finds the actual registered property value to be less than the chosen sum insured, they will make the necessary deductions in the claim amount.
- The insurance company is not liable to pay any compensation in case the damage is caused by environmental pollution.
- In case of unprecedented incidents, office insurance covers physical damages caused to your infrastructure. However, it does not cover the loss of business revenue caused by that incident.
- The loss caused by manufacturers, repairers, suppliers, or any other third party is not covered.
While we try to protect our business to the best we can, there are some emergencies that we just cannot prepare for. Investing in office insurance will surely help you if you face any such emergencies. There are a plethora of insurance companies that offer this insurance policy, compare and choose the best one for your business.