INSURANCE GUIDE
Business Equipment Insurance UK
Cover for computers, machinery and specialist business equipment against theft, damage and breakdown.
TL;DR
- Business equipment insurance covers your own business property - not covered by public liability or employers liability.
- All-risks portable equipment cover is needed for equipment taken off-site - standard premises policies restrict cover to a fixed address.
- Mechanical and electrical breakdown cover is a separate add-on not included in standard damage and theft policies.
- Hired-in equipment needs separate cover from your own-equipment policy.
What Business Equipment Insurance Covers
Business equipment insurance covers physical damage, theft, and loss of equipment that your business owns or is responsible for. Covered events typically include: fire and flood damage; theft from your business premises; accidental damage during use; and vandalism. Standard policies cover equipment at your principal business address. Equipment regularly taken off-site needs a portable all-risks extension.
Computers and Electronic Equipment
Office computers, laptops, monitors, printers, and specialist electronic equipment may be covered under a general business contents policy. However, specialist electronic equipment insurance provides broader cover, including mechanical and electrical breakdown - not covered under a standard all-risks policy - and sometimes data recovery costs. If your business depends on IT infrastructure, specialist electronic equipment cover is worth considering.
Portable Equipment and All-Risks Cover
Equipment taken away from your fixed business address needs portable all-risks cover. Laptops, cameras, survey instruments, medical devices, and specialist tools taken to client sites or events are not covered by a premises-based equipment policy while away from the address. Portable all-risks cover protects them wherever they are used within the UK and sometimes worldwide.
Machinery Breakdown
Standard business equipment insurance typically covers physical damage from external events - fire, theft, accidental damage - but not mechanical or electrical breakdown. Machinery breakdown cover is a separate policy or add-on that covers the cost of repair when plant or equipment fails due to internal mechanical or electrical fault. For businesses dependent on production equipment or specialist machinery, breakdown cover is important to avoid uninsured repair costs.
Hired-In Equipment
Equipment hired from a third party and used in your business is typically your responsibility during the hire period under the hire agreement. Your own-equipment policy does not automatically extend to hired-in items. Hired-in plant or equipment insurance covers your liability for loss or damage to equipment you have hired but do not own.
Related Guides
Disclaimer
This guide is for general information only and does not constitute financial or insurance advice. Kaeltripton.com is not regulated by the FCA. Always read policy documents in full before purchasing cover.
Frequently Asked Questions
Is business equipment insurance the same as contents insurance?
Business contents insurance typically covers furniture, stock, and general office contents. Business equipment insurance can be broader, covering specialist machinery, electronic equipment, and portable items taken off-site. The distinction depends on the policy wording. Confirm exactly what is and is not covered under each policy before deciding whether you need both or just one.
Does business equipment insurance cover laptops used at home?
It depends on the policy. A premises-only policy may restrict cover to your business address. If employees use laptops at home or work remotely, a portable all-risks extension or a working-from-home endorsement may be needed. Confirm the territorial scope of the policy and any conditions on home use with the insurer.
Does business equipment insurance cover cyber attacks causing equipment damage?
Equipment physically damaged by a power surge or fire following a cyber attack may be covered under a standard equipment policy. However, data loss, ransomware, and financial losses from a cyber incident are cyber risks covered by a separate cyber insurance policy. Business equipment insurance is a property cover for physical loss - it does not substitute for cyber insurance.
