Why Tech Companies Increase Certain Office Insurance Risks

Introduction: “It’s just an office”… until it isn’t

Tech companies often assume their main exposures are digital: cyber attacks, data breaches, and professional indemnity claims. But from an insurer’s perspective, a tech office can carry a different risk profile to a traditional professional services office.

That doesn’t mean tech firms are “high risk” by default. It means certain features of modern tech workplaces—high-value equipment, flexible working patterns, rapid growth, and reliance on third parties—can increase the likelihood or impact of common office losses.

This blog explains which office insurance risks can rise for tech companies, why they rise, and what you can do to manage them.

What “office insurance” usually covers (in plain English)

Office insurance is often arranged as part of a commercial combined policy or an office package. Cover varies, but commonly includes:

• Buildings insurance (if you own the premises)

• Contents insurance (office furniture, fixtures, general contents)

• Business equipment (computers, servers, specialist kit)

• Theft and malicious damage

• Escape of water (leaks from pipes, appliances, HVAC)

• Fire and smoke damage

• Business interruption (loss of income/extra costs after an insured event)

• Public liability (injury/property damage to third parties)

• Employers’ liability (legal requirement if you employ staff)

• Optional add-ons like money cover, glass, portable equipment, and legal expenses

For tech companies, the “contents” and “equipment” sections—and how you operate day to day—often drive the biggest underwriting questions.

1) High-value, high-density equipment increases theft and damage exposure

A typical office might have standard desktops, basic networking gear, and modest AV equipment. Tech offices can be different:

• Higher-spec laptops and monitors (often multiple screens per person)

• Test devices (phones, tablets, wearables)

• Demo kits, VR/AR headsets, cameras, microphones

• Specialist hardware (IoT gateways, sensors, lab-style equipment)

• Stock of peripherals and replacement devices

Why insurers care

• Attractiveness to thieves: Laptops and phones are easy to steal and resell.

• Higher total values per square metre: A small office can contain a surprisingly large sum insured.

• Accidental damage frequency: More kit, more movement, more chances for drops, spills, and cable-related accidents.

What helps

• Asset registers and valuations (avoid underinsurance)

• Lockable storage, secure docking, cable locks

• Controlled access (fobs, visitor logs)

• Alarm and CCTV where appropriate

• Clear desk and “lock away” policies

2) Hybrid working and “empty office” periods can increase risk

Tech companies often embrace flexible working. That can create patterns like:

• Offices that are quiet for days at a time

• Late-night working by small numbers of staff

• Irregular access by contractors

Why insurers care

• Unoccupied periods can increase the severity of losses (a leak or small fire can go unnoticed longer).

• Security risk can rise if access control is informal (“just tailgate in”).

• Keyholder response becomes critical when alarms trigger.

What helps

• Documented occupancy patterns disclosed to insurers

• Water leak detection (especially in multi-tenant buildings)

• Keyholder call-out procedures and tested alarm response

• Clear rules for out-of-hours access

3) Rapid growth can cause underinsurance and “outgrown” controls

Tech firms can scale quickly—more hires, more kit, more space, more locations.

Where this hits office insurance

• Sums insured (contents/equipment) become outdated

• Material changes (new premises, additional floors, storage units) aren’t always declared

• Processes lag behind growth (visitor management, PAT testing, fire risk assessments)

What helps

• Quarterly review of sums insured and equipment values

• A simple “insurance change log” (moves, refurbishments, new storage, new activities)

• Assigning ownership: who tells the broker/insurer when things change?

4) Server rooms, comms cupboards, and on-site infrastructure add fire and overheating risk

Many tech companies are “cloud-first”, but not all. Even cloud-heavy businesses often have:

• Network racks, switches, UPS units

• Dedicated comms cupboards

• Battery storage for resilience

• On-prem lab setups or edge devices

Why insurers care

• Heat and electrical load increases fire potential.

• Battery/UPS can be a loss driver if poorly maintained.

• Single point of failure: A small comms cupboard incident can knock out the entire office.

What helps

• Good housekeeping (no storage of combustibles in comms cupboards)

• Thermal management and maintenance of HVAC

• Electrical inspection regimes and documented servicing

• Fire detection appropriate to the area

5) Higher reliance on landlords and shared buildings increases “escape of water” and access issues

Tech companies commonly rent offices in:

• Serviced office spaces

• Co-working environments

• Multi-tenant buildings with shared plant rooms

Why insurers care

• Escape of water is one of the most common causes of office claims.

• In shared buildings, you may have limited control over:

  • Pipework maintenance

  • Who has access to plant rooms

  • How quickly leaks are detected

What helps

• Understanding responsibilities in the lease (who insures what)

• Asking about building maintenance and leak history

• Ensuring your own contents cover is correct even if the landlord insures the building

• Storing equipment off the floor where practical

6) More visitors, events, and collaboration can increase public liability exposure

Tech offices often host:

• Client demos and workshops

• Meetups and community events

• Investor meetings

• Recruitment days

Why insurers care

More footfall means more chance of:

• Slips, trips, and falls

• Accidental damage to visitors’ property

• Claims arising from temporary setups (cables, staging, AV)

What helps

• Basic event risk assessments (even for “small” meetups)

• Cable management and housekeeping

• Clear signage and controlled access to non-public areas

• Adequate public liability limits for your visitor profile

7) Portable equipment and off-site working increases “all risks” needs

Tech work is mobile. Laptops, phones, and demo devices travel:

• Between home and office

• To client sites

• To conferences and trade shows

• Internationally (depending on your business)

Why insurers care

Standard contents cover may only apply at the insured premises. Losses often happen:

• In transit

• In hotels and venues

• From vehicles (a common exclusion/limitation)

What helps

• Portable equipment / all risks cover with appropriate territorial limits

• Clear rules: never leave devices in vehicles, or specify conditions if unavoidable

• Encryption and MDM controls (also helps cyber posture)

8) Fit-outs, bespoke interiors, and “cool office” features can increase property risk

Modern tech offices may include:

• Custom joinery and high-end fit-outs

• Kitchens, coffee machines, dishwashers

• Breakout areas, games rooms

• Bike storage, showers

Why insurers care

• Kitchens increase fire and escape of water risk.

• High-end fit-outs increase reinstatement costs.

• Non-standard features can complicate claims and repairs.

What helps

• Proper declared values for tenant improvements

• Regular maintenance of appliances and plumbing

• Clear fire safety measures (extinguishers, training, housekeeping)

9) Contractors and third parties can increase liability and property loss frequency

Tech offices often have frequent third-party involvement:

• IT contractors, cabling teams, AV installers

• Cleaning and facilities contractors

• Fit-out contractors

Why insurers care

• Contractor works can cause fire (hot works), water damage, accidental damage.

• Liability can become messy if responsibilities aren’t clear.

What helps

• Contractor management: RAMS (risk assessments/method statements) where appropriate

• Evidence of contractors’ insurance

• Hot works controls and permits (where relevant)

10) Business interruption can be more severe for tech than expected

Some tech companies think business interruption is only for manufacturers or retailers. But office-based tech firms can suffer major disruption from:

• Fire, flood, or water damage making the office unusable

• Loss of comms infrastructure

• Denied access to the building

Why insurers care

The cost isn’t just “lost sales”. It can include:

• Extra costs to work (temporary office space, equipment hire)

• Ongoing payroll commitments

• Contractual penalties or lost opportunities

What helps

• Choosing an appropriate indemnity period (often 12–24 months depending on premises)

• Business continuity planning (remote working capability, supplier alternatives)

• Reviewing gross profit/turnover declarations for accuracy

Common underwriting questions tech companies should be ready for

If you want smoother renewals and fewer surprises, be ready to answer:

• What’s your total contents and equipment value?

• Do you have any server rooms, racks, or UPS units on-site?

• What security is in place (locks, alarms, access control, CCTV)?

• Are there any unoccupied periods? Any night-time working?

• Do you host events or have significant visitor footfall?

• Do staff take equipment off-site? Any overseas travel?

• Any previous claims (especially theft or escape of water)?

• Any hazardous processes (soldering, battery testing, lab work)?

Practical risk-reduction checklist (quick wins)

• Keep an up-to-date asset register and review sums insured quarterly

• Improve physical security: access control, visitor logs, lockable storage

• Install water leak detection where feasible; store kit off the floor

• Tighten comms cupboard/server area housekeeping and maintenance

• Formalise out-of-hours access and keyholder response

• Add portable equipment cover if devices leave the office

• Document contractor controls and check their insurance

• Review business interruption indemnity period and extra costs cover

Conclusion: tech risk is manageable—if it’s described properly

Tech companies don’t “cause” office insurance problems; they often change the shape of the risk. Higher-value equipment, flexible working, rapid growth, and shared premises can all increase the likelihood or impact of common office claims.

The good news: most of these risks are manageable with practical controls and clear disclosure. If you can show insurers you understand your exposures—and you’ve put sensible measures in place—you’re in a stronger position to secure the right cover at a fair premium.

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If you run a UK tech business and want a quick review of your office insurance setup—contents values, portable equipment, business interruption, and liability limits—get in touch for a no-nonsense chat and a tailored quote.