Do we need special insurance for office moves?

Understanding Insurance for Office Moves

The need for 'special' insurance for office moves is often misunderstood. It is less about a unique type of policy and more about ensuring that existing coverage, combined with the removals company's provision, adequately protects the business assets being moved.

Office moves involve a different scale and type of risk compared to domestic relocations, primarily due to the value and criticality of business equipment, sensitive data, and the potential for significant business interruption if items are damaged or lost.

Standard Removals Company Insurance

Reputable removals companies operate with several core insurance policies:

• Goods in Transit Insurance: This covers items for loss or damage while they are being transported by the removals company. It is crucial to understand that this often comes with limitations. Policies typically offer Released Value Protection, which provides compensation based on a fixed amount per weight, rather than the item's replacement value. Higher value items may therefore not be fully covered under this standard.
• Public Liability Insurance: This covers damage to third-party property or injury to third parties that might occur during the move, for example, if a heavy item accidentally damages the building's structure or if someone trips over equipment on the pavement.
• Employer's Liability Insurance: This is a legal requirement for any business with employees and covers staff in the event of an injury or illness caused by their work.

While these policies are standard, their limits may not be sufficient for a business's specific assets, particularly for high-value IT infrastructure, specialist machinery, or extensive office furniture. Businesses should always clarify the exact terms, limits, and exclusions with their chosen removals provider.

Client's Existing Business Insurance

A critical first step for any business planning an office move is to review its existing business contents insurance policy. Many policies include a 'goods in transit' clause that covers business assets during relocation. However, it is vital to:

• Confirm the specific coverage limits and any deductibles that apply to items in transit.
• Ascertain whether the policy offers Full Value Protection, which would cover the replacement cost of lost or damaged items without depreciation.
• Check for any specific exclusions, such as data loss or items not professionally packed.
• Consider contacting the insurer to arrange a temporary extension or amendment to the policy to ensure comprehensive cover for the entire moving period.

Considering Additional Cover for Office Moves

For organisations with particularly valuable assets, a substantial volume of equipment, or items critical to ongoing operations, additional insurance may be highly advisable. This can include:

• All-Risk Cover: This type of policy offers broader protection against a wider range of perils than standard transit insurance, often covering accidental damage, theft, and other unforeseen events. It is particularly useful for fragile or high-value items where full replacement is essential.
• Specific Item Coverage: For unique or extremely valuable assets, such as bespoke machinery, artwork, or high-end servers, a separate, specific policy might be prudent.

When dealing with high-value technology, particular attention should be paid to how to handle IT and server relocation. While physical hardware can be insured, data loss is typically not covered by standard removals or transit insurance and requires a separate cyber insurance policy.

Key Considerations for Office Move Insurance

To ensure adequate protection, businesses should:

• Create a Detailed Inventory: Document all items being moved, noting their condition and estimated value. For high-value items, photographic evidence is recommended.
• Declare High-Value Items: Clearly inform both the removals company and your insurer about any items exceeding standard coverage limits.
• Understand Packing Responsibilities: The method of packing can significantly impact insurance claims. Items packed by the client might not be covered if damage results from inadequate packing. For example, understanding how to pack a desktop computer correctly can prevent common issues.
• Review Policy Exclusions: Pay close attention to what is specifically not covered, such as consequential losses (e.g., loss of income due to damaged equipment), or items deemed hazardous.
• Obtain Written Confirmation: Always ensure all insurance details, coverage limits, and terms are provided in writing by both the removals company and your own insurer.