Business contents insurance

What is business contents insurance and why do you need it?


Fact checked
Picture not described

Whether you work from a home office or dedicated premises, losing the equipment your business relies on to operate can cripple it. Business contents insurance covers the possessions linked to your business, so that you can dust yourself off and carry on if they’re lost, stolen or damaged.

Simply Business

Compare tailored business insurance

  • Compare business insurance quotes from leading brands
  • Get insurance tailored to your needs
  • Online quote generated in minutes

What is business contents insurance?

Business contents insurance covers the equipment and furnishings you use for your business against theft, loss or damage.

This includes having your tools stolen or your premises (or home office if you work from home) damaged by a variety of reasons, such as water leaks and fire. Your insurance covers the cost of replacing your lost equipment, meaning you can get back to work as soon as possible.

When would I need business contents insurance?

It is not mandatory under UK law to have business contents insurance. However, it is highly recommended, especially if you rely heavily on your tools or furnishings to operate.

If all you need for your work is a laptop, you might be able to get gadget cover for it, or include it in your home contents insurance (be aware some policies do not allow possessions used for business, so make sure you check the small print).

If your equipment constitutes more than just one item, you should consider taking out business contents insurance.

Some possible situations that could lead to a claim include:

  • Flooding
  • Storm damage (including lightning)
  • Fire
  • Theft
  • Vandalism or malicious damage

What does business contents insurance cover?

Cover benefits will vary between each insurance provider, but most policies will typically cover your tools and equipment for damage, theft, loss and vandalism.

You might also be able to insure your business contents for damage, loss or theft while in transit and cover your stock in storage or while it’s being delivered to customers.

Some providers may offer business contents insurance as part of a general business insurance policy. These usually include:

Common claims examples

  • A fire in your premises. No one likes to think of something like this happening, but fires can and do start accidentally, or sometimes even maliciously. What’s more, if your premises are in a busy industrial area, fire can start elsewhere and spread. If this happens, replacing the contents of your office (including furnishing and tech equipment) can be expensive, so contents insurance can be a real lifeline.
  • Storm or flood damage to your premises. Similarly to the above, the contents of your business can also be damaged by the elements. This can sometimes be just as devastating as a fire, and not having to pay out to replace all of your equipment can make a real difference.
  • Break-in or theft of tools. Unfortunately, businesses and tradespeople are often targeted by criminals. Your premises can be robbed of valuable equipment or tech, and your tools can be stolen from your vehicle. Business contents insurance can cover you for your losses in both instances.
  • Malicious damage or vandalism. Some people cause damage for damage’s sake. If this happens to property relating to your business, your contents insurance will cover the expenses.

It’s important to note that, if you own the premises your business is located in, you should consider getting business buildings insurance as well. Business contents insurance is unlikely to cover damage to the fabric of the building, including roof, flooring, pipes and fitted fixtures.

Frequently asked questions

The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you.

Read more on this topic

  • Shop and retail insurance For a customer facing business, from a boutique to a bar, having the right insurance can make all the difference. Find out all you need to know here.
  • AXA business insurance review Find out all you need to know about AXA's business insurance cover and whether it's right for your business.
  • Direct Line business insurance review Find out what's included in Direct Line's business insurance policy and whether it's right for your business.
  • Business interruption insurance Most businesses impacted by coronavirus don't have business interruption insurance. Find out what it is and why it's important.
  • Personal trainer insurance Personal Trainer insurance is designed to protect you against claims made against you if something goes wrong while you're with a client.
  • Cyber liability insurance Cyber insurance is a form of specialty cover designed to protect your business from a wide range of Internet-based risks such as data breaches, malicious cyber hacks and email forgery.
  • Product liability insurance Product liability insurance protects your business against claims made against you if a product you've sold causes personal injury or property damage.
  • Employers' liability insurance If your business employs staff, you are legally required to have employers liability insurance to make sure both you and they are protected.
  • Public liability insurance in the UK Public liability insurance protects your business against claims of personal injury or property damage that a third party may have suffered due to your business operations.
  • Professional indemnity insurance in the UK Professional indemnity insurance provides cover for legal costs and potential compensation payments associated with claims against your business for wrongful advice and services, that result in client loss.
Go to site