Office Insurance vs Office Block Insurance: What’s the Difference?

Quick definition (in plain English)

Office insurance usually protects a business operating from an office—its contents, equipment, liabilities, and loss of income.

Office block insurance (often called commercial property owners insurance for an office building) usually protects the building owner/landlord/freeholder—the structure, common parts, and property-owner risks.

They can overlap, but they’re designed for different people.

Why the confusion happens

In the UK, people often say “office insurance” when they really mean “insurance for an office building”. Insurers and brokers separate it into two broad needs:

• Occupier risks (the business using the space)

• Property-owner risks (the person/company that owns the building)

If you pick the wrong one, you can end up with:

• A tenant insuring contents but not the building they’re responsible for under the lease

• A landlord insuring the building but missing property owners’ liability

• Gaps around common areas, glass, or business interruption

Office insurance: what it typically covers

Office insurance is usually arranged by the tenant or owner-occupier business. It’s often packaged as “office combined” or as part of a “commercial combined” policy.

1) Office contents and equipment

Commonly includes:

• Desks, chairs, meeting-room furniture

• Computers, servers, monitors, phones

• Printers and specialist equipment

• Stock of stationery and consumables

Watch-outs:

• Sum insured: underinsurance can reduce claims payments.

• Portable equipment: laptops/phones used off-site may need an extension.

• High-value items: may need itemised cover.

2) Business interruption (BI)

BI is one of the biggest differences between “occupier” and “owner” cover.

BI can cover:

• Loss of gross profit or revenue after an insured event (e.g., fire)

• Increased cost of working (temporary office space, extra IT costs)

Key details to get right:

• Indemnity period (often 12, 18, or 24 months)

• Basis of settlement (gross profit vs gross revenue)

• Rent payable/receivable (depending on your lease)

3) Employers’ liability (EL)

If you employ staff (including many part-time/temporary arrangements), EL is typically a legal requirement in the UK.

It can cover:

• Injury/illness claims from employees

• Legal defence costs

4) Public liability (PL)

PL can cover claims from third parties for injury or property damage arising from your business activities.

Examples:

• A visitor slips in your reception area

• You accidentally damage a client’s property during a meeting or event

5) Professional indemnity (PI) (where relevant)

Not every office-based business needs PI, but many do—especially:

• Consultants, IT contractors, agencies, designers

• Accountants, surveyors, property professionals

PI can cover:

• Negligence claims

• Breach of duty

• Certain types of IP infringement (policy-dependent)

6) Cyber insurance (increasingly common)

If your office runs on email, cloud services, and customer data, cyber cover may be relevant.

Cyber can help with:

• Incident response and forensic support

• Business interruption from network interruption

• Liability and regulatory costs (policy-dependent)

7) Money, personal accident, legal expenses (optional)

Many office packages can add:

• Money cover (cash on premises/in transit)

• Legal expenses (employment disputes, contract disputes)

• Personal accident for key people

Office block insurance: what it typically covers

Office block insurance is usually arranged by the freeholder, landlord, property company, or management company.

It’s designed to protect the building and the property owner’s exposures, not the tenant’s day-to-day business operations.

1) Buildings insurance (structure)

Typically covers:

• The main structure: walls, roof, floors

• Permanent fixtures: lifts, fixed heating, built-in services

• Common parts: corridors, stairwells, lobbies

Depending on the wording, it may also include:

• External areas: car parks, boundary walls, signage

• Landlord’s fixtures and fittings

Critical watch-outs:

• Reinstatement value: buildings should be insured for the cost to rebuild, not market value.

• Index linking: helps keep sums insured aligned with inflation.

• Specified perils vs all risks: know what’s actually covered.

2) Property owners’ liability

This is a key piece many landlords overlook.

It can cover:

• Injury claims from visitors/tenants due to defects in the building or common areas

• Legal costs and damages

Example:

• A contractor trips on a damaged stair tread in the common stairwell.

3) Loss of rent / alternative accommodation

If the building can’t be occupied after an insured event, the landlord may lose rent.

Cover can include:

• Loss of rent for a set indemnity period

• Alternative accommodation costs (where applicable)

4) Terrorism insurance (optional but common in commercial property)

Terrorism cover in the UK is often arranged separately (commonly via Pool Re-backed solutions). It may be required by lenders.

5) Subsidence, escape of water, flood (where relevant)

Office blocks can be exposed to:

• Escape of water from multiple floors

• Flood risk depending on location

• Subsidence risk depending on ground conditions

Insurers may apply higher excesses or additional conditions.

6) Engineering inspection / lift insurance (often separate)

If the building has lifts, pressure systems, or other plant, you may need:

• Statutory inspections

• Engineering breakdown cover

This is sometimes separate from the main property policy.

Who needs which policy? (common scenarios)

Scenario A: You rent a single office suite

You typically need office insurance for:

• Contents and equipment

• PL/EL

• BI

• Cyber/PI (if relevant)

The landlord typically needs office block insurance for the building.

Scenario B: You own the building and run your business from it (owner-occupier)

You may need both elements:

• Buildings and property owners’ liability (block-style cover)

• Contents, EL/PL, BI (office/occupier cover)

Sometimes this can be arranged under a broader commercial combined policy, but it still needs to be structured correctly.

Scenario C: You own an office block and lease it to multiple tenants

You typically need office block insurance covering:

• Buildings and common parts

• Property owners’ liability

• Loss of rent

Tenants arrange their own office insurance for contents and their business risks.

Scenario D: Serviced offices / co-working space

This can be more complex because you may be both:

• A property operator (public footfall, events, shared areas)

• An occupier with staff and business operations

You may need a tailored package combining:

• Buildings (if you own it) or tenant’s improvements

• PL/EL

• BI

• Equipment cover

• Cyber

The lease is the deciding factor (don’t skip this)

In UK commercial property, the lease often sets out who insures what. Key clauses that affect insurance:

• Insuring obligations (landlord insures building; tenant reimburses via service charge)

• Tenant’s improvements (who covers fit-out, partitions, flooring, signage?)

• Glass (plate glass, internal glazing, signage)

• Dilapidations and reinstatement obligations

• Subrogation waivers (important in landlord/tenant claims situations)

If you’re unsure, get your lease reviewed and align the insurance to it.

What’s usually not covered (or needs an add-on)

Whether it’s office insurance or office block insurance, watch for:

• Wear and tear / gradual deterioration

• Poor maintenance

• Known defects

• Unoccupied periods (strict conditions can apply)

• Flood exclusions or high excesses in flood-prone areas

• Cyber events under property policies (often excluded unless specifically covered)

• Contract works (refurbishments may need separate cover)

Claims examples: office vs office block

Example 1: Burst pipe floods your office suite

• Tenant’s office insurance may cover damaged contents and BI.

• Landlord’s office block insurance may cover building damage (ceilings, walls, fixed electrics).

Example 2: Fire in the communal electrical riser

• Block policy typically responds for building/common parts.

• Tenant policy may respond for contents/BI.

Example 3: Visitor slips in your reception area

• If it’s within your demised premises and caused by your operations, tenant PL may respond.

• If it’s a defect in the building/common area, property owners’ liability may respond.

Example 4: Your staff member develops RSI from workstation setup

• Employers’ liability is the key cover.

How to choose the right cover (simple checklist)

If you’re the tenant/occupier

• Confirm what the landlord insures under the lease

• List your contents and equipment (including laptops off-site)

• Decide if you need BI and choose an indemnity period

• Check if you need EL (most employers do)

• Add PI and cyber if your work involves advice/data

If you’re the landlord/freeholder

• Insure the building for reinstatement value (not market value)

• Include property owners’ liability

• Add loss of rent with a realistic indemnity period

• Consider terrorism cover (especially if lender requires it)

• Review unoccupancy conditions and risk management requirements

Cost drivers (why one quote is cheaper than another)

Insurers price office and office block risks differently.

Common rating factors include:

• Construction type (standard vs non-standard)

• Claims history (escape of water is a big one)

• Security and fire protections (alarms, sprinklers, compartmentation)

• Occupancy and tenant mix (single tenant vs multi-let)

• Location (flood risk, crime rates)

• Sum insured accuracy and valuation quality

• Business activities (for occupier policies)

Common mistakes to avoid

• Insuring the building under an office contents policy (or assuming it’s included)

• Underinsuring contents or buildings

• Forgetting BI (or choosing too short an indemnity period)

• Not covering tenant’s improvements

• Assuming the landlord’s policy covers your laptops and equipment

• Missing liability cover (PL/EL/property owners’ liability)

FAQs

Is office block insurance the same as commercial buildings insurance?

Often, yes—office block insurance is typically a commercial buildings policy packaged for an office building, usually including property owners’ liability and loss of rent.

If I’m a tenant, do I need buildings insurance?

Usually the landlord insures the building, but some leases make the tenant responsible for certain parts (like internal fixtures, glass, or improvements). Your lease decides.

Does office insurance cover working from home?

Sometimes, but it depends on the wording. Many policies need an extension for home working equipment and liability.

What about shared areas in a multi-let office building?

Shared areas are typically insured by the landlord under the block policy. Tenants insure their own demised space and contents.

Do I need separate cover for refurbishments?

Often, yes. Refurbishments can require contract works insurance and may change the risk profile (hot works, unoccupancy, altered fire protection).

A practical way to think about it

If you’re asking:

• “How do I protect my business if something goes wrong in the office?” → office insurance

• “How do I protect the building and my responsibilities as a landlord?” → office block insurance

In many real-world cases—especially for owner-occupiers—you’ll need a solution that includes both.

Call to action

If you’re unsure whether you need office insurance, office block insurance, or a combined solution, it’s worth reviewing your lease, your sums insured, and how you actually use the building.

Speak to a specialist commercial broker to sense-check the structure, avoid gaps, and make sure the policy matches your real-world risk.