High-Risk Office Tenants: How Insurers Assess Them

Introduction

Not all office tenants look the same to an insurer. Two businesses can occupy identical space in the same building, pay similar rent, and have similar headcount—yet attract very different insurance terms.

From a UK commercial insurance perspective, “high-risk office tenants” are typically those whose activities, visitors, equipment, data exposure, or regulatory profile increase the likelihood or severity of claims. That can mean more frequent incidents (e.g., slips and trips from high footfall), higher-value losses (e.g., specialist kit), or more complex liabilities (e.g., regulated advice, data breaches, professional negligence).

For landlords, managing tenant risk is about protecting the building, keeping premiums stable, and avoiding disputes at claim time. For tenants, it’s about securing the right cover at a fair premium—and making sure the lease and the insurance programme actually match.

This guide explains how insurers assess office tenants, what triggers “high-risk” underwriting, and what practical steps can reduce risk and improve terms.

What insurers mean by “high-risk” office tenants

Insurers don’t usually label a tenant “high risk” because they dislike the business. They do it because the tenant’s profile changes the probability or cost of:

• Property damage (fire, escape of water, malicious damage)

• Business interruption (loss of rent for landlords; loss of income for tenants)

• Public liability (visitors, deliveries, events, third-party injury)

• Employers’ liability (workplace incidents, stress claims)

• Professional indemnity (advice, design, regulated services)

• Cyber and crime (data breach, funds transfer fraud)

Even when the premises are “just offices,” the tenant’s operations can introduce exposures that are closer to retail, healthcare, education, or light industrial risk.

Common examples of higher-risk office occupiers

“High-risk” is relative, but these office-based occupiers often attract more scrutiny:

• Call centres and high headcount operations (crowding, workstation density, stress/HR claims)

• Financial services and regulated advice (complaints, PI exposure, FCA expectations)

• Claims management, debt collection, and high-conflict services (aggressive interactions, reputational issues)

• Legal, accountancy, and consultancy firms (PI severity, client money handling)

• Tech firms handling sensitive data (cyber exposure, contractual liabilities)

• Healthcare admin hubs (patient data, safeguarding considerations)

• Training providers and exam centres (public liability, crowd management)

• Serviced offices/co-working operators (multiple occupiers, unknown sub-tenants)

• Charities with public-facing services (vulnerable visitors, safeguarding)

• Businesses with frequent client visits (beauty/aesthetic consult rooms, clinics operating “in office” settings)

Insurers also pay attention to “office” tenants that quietly include:

• Storage of stock or flammables

• Small-scale assembly/repair

• Cooking facilities beyond basic staff kitchens

• Events, seminars, or public gatherings

The underwriting lens: how insurers actually assess tenant risk

Underwriters typically assess office tenants using a mix of:

1. Trade/industry classification (what you do)

2. Occupancy and use of space (how you do it)

3. People and footfall (who is on-site and how often)

4. Controls and governance (how well you manage risk)

5. Claims history (what has happened before)

6. Contractual and regulatory obligations (what you’re responsible for)

Below are the main factors that can push an office tenant into “high-risk” territory.

1) Nature of business activities (trade risk)

The single biggest driver is the tenant’s trade. Insurers will ask:

• Do you provide advice, design, or regulated services?

• Do you handle client money?

• Are you involved in litigation-prone areas (employment advice, tax planning, claims management)?

• Do you have high-value intellectual property or contractual penalties?

Trades that increase the chance of large liability claims (particularly PI) can affect not only the tenant’s own insurance, but also the landlord’s appetite—especially in multi-let buildings.

2) Visitor profile and footfall

Office risk changes dramatically depending on who visits:

• Low footfall: admin office with occasional client meetings

• Medium footfall: daily appointments, interviews, training

• High footfall: walk-in services, co-working, exam centres

More visitors can increase:

• Slips, trips, and falls

• Security incidents

• Wear and tear leading to escape of water or maintenance issues

• Fire loading and evacuation complexity

Insurers may ask about:

• Reception controls and sign-in procedures

• CCTV coverage

• Out-of-hours access management

• Fire evacuation plans and drills

3) Occupancy density and workstation layout

High headcount in a small footprint can increase:

• Fire load (more electrical equipment)

• Heat build-up and ventilation issues

• Escape routes becoming obstructed

• Ergonomic and manual handling claims

Underwriters may look for:

• Evidence of workstation risk assessments

• PAT testing and electrical inspection regimes

• Clear desk policies and cable management

4) Hours of operation and lone working

Extended hours and lone working can increase:

• Security risk (break-ins, theft)

• Personal safety incidents

• Delayed detection of escape of water or fire

Insurers may ask:

• Are staff on-site 24/7?

• Is there a security presence?

• Are there water leak detection systems?

• Are there formal lone worker procedures?

5) Electrical load, equipment, and heat sources

“Office” doesn’t always mean low electrical risk. High-risk indicators include:

• Server rooms and comms racks

• High-performance computing

• Multiple printers and production equipment

• Portable heaters (often a red flag)

• Battery charging (e-bikes, tools, lithium-ion devices)

Insurers like to see:

• Fixed heating rather than portable heaters

• Clear battery charging policies

• Dedicated, ventilated server rooms

• Regular electrical inspections

6) Fire safety and housekeeping

Fire remains a key driver of property claims. Underwriters will consider:

• Fire alarm category and maintenance

• Emergency lighting tests

• Fire doors and compartmentation

• Storage in corridors and stairwells

• Smoking/vaping controls

For higher-risk tenants (or multi-occupancy buildings), insurers may require:

• Documented fire risk assessments

• Evidence of remedial actions

• Clear responsibilities between landlord and tenant

7) Security and crime exposure

Some office tenants are more attractive targets:

• Firms handling cash or valuables

• Businesses with high-value laptops and devices

• Organisations with sensitive personal data

Insurers may ask about:

• Intruder alarm grade and monitoring

• Access control systems

• Key management

• Secure storage for portable equipment

8) Data, cyber, and technology dependency

Even if the landlord’s policy doesn’t cover the tenant’s cyber losses, cyber risk can still influence underwriting appetite—especially where:

• The tenant’s operations are highly data-driven

• There is a high likelihood of business interruption

• The tenant handles special category data

Tenants should expect questions on:

• MFA and password policies

• Backups (including offline/immutable backups)

• Patch management

• Staff phishing training

• Incident response planning

9) Contractual risk transfer and lease obligations

A surprisingly common reason for “high-risk” outcomes is not the tenant’s trade, but the lease wording.

Insurers will want clarity on:

• Who is responsible for internal fixtures and improvements?

• Who maintains HVAC and plumbing within the demise?

• Who is responsible for fire safety compliance?

• Are there subletting rights?

Ambiguity can lead to:

• Claims disputes

• Gaps in cover

• Increased premiums due to uncertainty

10) Claims history and risk culture

Past claims don’t automatically mean higher premiums forever, but they do influence underwriting.

Insurers will look at:

• Frequency vs severity (many small claims vs one large loss)

• Root cause and corrective actions

• Evidence of improved controls

A tenant that can show a strong risk culture—documented procedures, training, maintenance logs—often secures better terms than a similar business that cannot.

How landlords are affected by high-risk office tenants

Landlords often assume tenant risk is “the tenant’s problem.” In reality, tenant profile can affect:

• Buildings insurance premium and terms

• Loss of rent exposure

• Policy conditions (e.g., security requirements)

• Insurer appetite at renewal

In multi-let properties, one higher-risk tenant can influence the overall view of the building. This is especially true where the tenant increases footfall, introduces heat sources, or changes the building’s fire load.

Key landlord concerns insurers focus on

• Tenant vetting and permitted use clauses

• Control over alterations and fit-outs

• Management of common areas (slips/trips)

• Fire safety responsibilities and documentation

• Subletting and serviced office arrangements

How tenants can reduce risk and improve insurance terms

If you’re an office tenant and you’re being treated as “high risk,” you can often improve terms by presenting your risk clearly and demonstrating controls.

Practical steps that help underwriting

• Provide a clear business description (what you do and don’t do)

• Document visitor management (sign-in, escorts, reception controls)

• Show fire safety compliance (fire risk assessment, drill records)

• Control heat sources (ban portable heaters; manage battery charging)

• Improve security (alarm, CCTV, access control, secure storage)

• Strengthen cyber controls (MFA, backups, training)

• Maintain equipment (PAT testing, fixed wiring inspections)

• Agree responsibilities in writing (lease clarity on repairs and maintenance)

What information insurers typically request (and why)

Expect some or all of the following:

• Tenant trade and services: determines liability and reputational exposure

• Headcount and floor area: indicates occupancy density

• Visitor numbers: affects public liability risk

• Hours of operation: affects security and detection of losses

• Fit-out details: changes fire load and escape routes

• IT and server room details: electrical/fire exposure

• Claims history: predicts future loss likelihood

• Risk management evidence: shows maturity and reduces uncertainty

If you can provide this information quickly and accurately, you reduce the “unknowns”—and unknowns are expensive in insurance.

Common cover gaps and mistakes to avoid

High-risk office tenants (and landlords) often fall into these traps:

• Assuming the landlord’s policy covers tenant contents (it usually doesn’t)

• Not insuring tenant improvements (fit-outs can be costly)

• Overlooking business interruption (especially for tech and professional services)

• Ignoring PI exposure (advice-based businesses)

• Underestimating cyber risk (ransomware and funds transfer fraud)

• Not aligning lease responsibilities with insurance (repairs and maintenance)

A simple “risk presentation” template for high-risk office tenants

When approaching insurers (or your broker), it helps to present your risk in a structured way:

• Business overview (services, clients, regulated status)

• Premises details (address, floor area, building type)

• Occupancy (headcount, visitors, working hours)

• Controls (fire, security, health & safety, cyber)

• Claims history (last 3–5 years) and improvements made

• Insurance requirements (limits, contractual obligations)

A strong presentation can be the difference between a standard premium and a loaded one.

FAQs

Are call centres considered high-risk office tenants?

Often, yes—mainly due to high occupancy density, longer operating hours, and increased HR and employers’ liability exposures. The risk can be reduced with strong health & safety procedures, clear evacuation planning, and robust security.

Do insurers care about the tenant’s industry if the building is modern and well protected?

Yes. Building quality helps, but tenant activities still influence liability, fire load, and claims likelihood. A modern building with a high-footfall tenant can still be treated more cautiously.

Can a landlord refuse a tenant because of insurance concerns?

Landlords may restrict certain trades through permitted use clauses and insurer requirements. It’s best to confirm insurer appetite before agreeing heads of terms.

Does a tenant’s cyber risk affect the landlord’s buildings insurance?

Not directly in most cases, but it can influence overall insurer appetite—especially in multi-let buildings where tenant operations could cause disruption, reputational issues, or increased claims complexity.

What’s the quickest way to reduce premiums for a higher-risk office tenant?

Reduce uncertainty and demonstrate controls: provide a clear business description, evidence of fire and security measures, and a clean claims narrative showing corrective actions.

What if the tenant sublets desks or runs a co-working model?

That can increase risk because occupiers change frequently and are harder to vet. Insurers may require tighter controls, clearer tenancy agreements, and stronger management of access and common areas.

Conclusion

“High-risk office tenants” aren’t necessarily unsafe—they’re simply businesses whose activities, visitor profile, equipment, or liabilities increase the likelihood or cost of claims.

Insurers assess these tenants through trade classification, occupancy and footfall, fire and security controls, governance, and claims history. The good news is that many of the factors that drive high-risk underwriting are manageable.

If you’re a landlord, the key is tenant vetting, clear lease responsibilities, and strong building-wide risk management. If you’re a tenant, the key is a clear risk presentation and demonstrable controls—so insurers can price the risk accurately rather than defensively.

If you’d like, share the type of office tenant you’re targeting (e.g., call centre, regulated advice, co-working), and I’ll tailor this into a niche-specific version with UK-focused examples and a stronger conversion CTA for Insure24.