Business contents insurance

Business contents insurance is a type of business insurance that can protect the possessions and equipment in your work premises. It’s also known as commercial contents or business assets insurance.

Whether you run a hair salon, coffee shop or office, you’re likely to have items that would be expensive to replace if something happened to them.

A typical business contents insurance policy will cover your workplace against the risks that fire, water damage and theft can pose to your furniture, tools and equipment.

There are a number of scenarios where business contents insurance could come in handy. For example:

• Your business premises gets flooded or destroyed in a fire and you have to replace everything inside

• Your shop gets broken into or vandalised

• Vital equipment gets damaged by a burst pipe and you need to replace it quickly

• Valuable stock kept on the premises is stolen

• You use expensive or specialist equipment that is difficult to replace.

Incidents can happen at any time. Business contents insurance gives you peace of mind that you’ll be able to get back on track should the worst happen. Although business contents cover isn’t a legal requirement in the UK, it is useful to have.

If you’re trying to decide if you need business contents insurance, it’s worth adding up the value of your business assets to see what it would cost to replace them. Then you can weigh that up against the cost of insurance.

Standard business contents insurance will typically cover items kept on the premises, not assets held elsewhere.

It should offer financial protection against damage or loss caused by fire, flooding, storm damage or theft to:

• Fixtures and fittings – like your flooring, lighting or the equipment in your office kitchen

• Furniture – like desks, chairs and shelves

• Office equipment – such as computers, printers and modems

• Manufacturing equipment and tools

• Any staff or client belongings on the premises.

Business contents insurance may also cover stock or even cash left on the premises. Check the policy details carefully to make sure you’re getting an appropriate level of cover for your business needs.

Policies vary but, generally, business contents insurance won’t cover you for any damage caused by general wear or tear.

Before choosing a commercial contents insurance policy, here are some questions to ask yourself:

• Should I combine my business insurance?

  You could buy business contents insurance only, as standalone cover, but it may prove more cost-effective to purchase it alongside other types of commercial cover. For example, a comprehensive business insurance package could also cover buildings, public liability insurance, business interruption insurance and employers’ liability insurance – which is a legal requirement if you employ someone. Employers’ liability insurance could cover you if one of your employees becomes ill or is injured as a result of working for you. If you employ one or more people or are a limited company with multiple directors, it's a legal requirement to have cover. If you're not a limited company, it's not a legal requirement to have employers' liability insurance if the employees are immediate family members, though if a policy is in place it would still cover immediate family members working for you.

• Do I want ‘new for old’ cover?

  When you’re comparing quotes, check the policy terms carefully to see if you’ll only be covered for the initial purchase price of your items – called indemnity contents insurance – or if your insurance will pay out for a new equivalent.

• Is there a claim limit?

  There’s normally a cap on the maximum amount your insurance will pay out per claim. Make sure it will cover you for large-scale loss, such as a flood. If you need to insure stock, check it’s included in the policy.

• How much business contents cover do I need?

  The most important thing is to have an accurate idea of the value of your assets and stock, so you can make sure you have adequate cover. You don’t want to overpay for cover you don’t need, or underestimate and end up out of pocket.

Start a quote with us and we’ll help you find competitive deals for the different types of business insurance you might need.

The cost of business contents insurance depends on the value of the assets or contents you want to insure. It also depends on whether you want cover for the purchase price or a new equivalent. The industry you work in may also factor into the price – for example, if you want to insure specialist or high-value equipment.

Insurance providers will also consider your claims history and any ongoing disputes.

To find the right cover for your business needs, it’s a good idea to compare several quotes so you can find cover at a price that works for you.