Business equipment insurance

What is business equipment insurance?

Business equipment insurance is an optional extra that you can add to your business insurance policy to cover the cost of replacing or repairing lost, stolen or accidentally damaged equipment. You’ll pay a premium based on the type of business you run and the type of equipment you are covering.

It’s designed to protect any moveable equipment used in connection with your business including:

- Communication equipment like your phone, tablet or laptop
- Portable machinery
- Office contents
- Machinery leased by you or your partners

We pay claims based on the cost of a like-for-like new replacement. That means that you’re paid for the full value needed to purchase a new replacement, even if your equipment has suffered wear and tear over time.

Please note: We cover accidental damage or theft, not general “wear and tear” caused by routine usage or age.

What equipment is covered?

Business equipment insurance covers equipment needed for your job – typically portable equipment such as laptops, mobile phones and cameras.

Examples include:

- Communication tools: including desktops, laptops, mobiles, and tablets. 
- Essential work-tech: including graphic tablets, hairdressing equipment, and exercise equipment. 
- Photography equipment: including cameras, lighting, and staging equipment.

So, whether you’re working with computers, styling someone’s hair or teaching a Zumba class – your essential kit is covered with a business equipment insurance policy. You’ll get protection for any equipment needed to keep your business running, no matter what your job description is. 

Who needs business equipment insurance?

Business equipment insurance is typically chosen by professionals.

- For tradespeople, you may want to consider own plant tools and equipment cover to safeguard everything in your toolkit – from hammers and chisels to power-tools and diggers.
- For retail businesses, a business contents insurance policy may offer more comprehensive coverage for your stock, equipment, and shop.

What is stock in trade cover?

With this cover, you can protect stock (the goods you sell or use in your work) up to a value of £2,500. Stock in trade cover is an automatic extension that you get with both business equipment and tools insurance.

How much business equipment cover do I need?

When you’re deciding on cover levels you should think about the total value of your equipment and select a cover limit that matches. The maximum you are paid in the event of a claim is the limit you have selected.

Why it matters:

- Underinsuring could leave you under protected.
- Over-insuring means paying more in premiums than you need.
- To get it right, know the exact value of your equipment and keep records of its condition.

Available limits: You may choose from £2,500, £7,500, £12,500, £17,500, or £25,000.

Is rental equipment covered?

No, a business equipment insurance policy doesn’t cover rented equipment.

If you need to insure rented equipment, you should instead consider hired-in plant and tools insurance. It’s designed to help tradespeople and construction workers protect things like constructional plant, machinery, tools or site huts if they’re damaged or destroyed whilst in your care.

Is business equipment separate to tools insurance?

Yes, tools insurance is a separate cover and is more suited to tradespeople as it protects tools, rather than equipment. If you need to protect tools and heavy machinery, you may want to consider:

Own plant, tools, and equipment cover

If you’re a tradesperson, own plant tools and equipment offers protection in case of accidental loss, theft or damage to your owned tools, including;

Constructional plant
Machinery
Trailers
Tools
Site huts
Caravans (including their contents)
Portable tools and equipment (including electronic communication and computing equipment)

Find out more

Hired-in plant cover

If you’re renting specialist gear, our hired-in equipment cover will protect them if they’re damaged or destroyed in your care. We’ll provide cover for a variety of hired-in equipment, such as:

Constructional plant
Machinery
Tools and equipment
Site huts or caravans you have hired to use in connection with the business

Find out more

What else should you consider when buying business equipment insurance?

When you’re buying business equipment insurance there may be other factors to consider.

Excess details

You might think that it makes more sense to have a high excess on your policy. However, if your excess costs you more than it would cost you to replace the damaged or stolen equipment, then you’re not getting the value you should be. So, always check your excess.

For example: if your claim is for £600, the 10% excess would be £60. However, because the minimum excess is £250, you would pay £250. On a £2,500 claim, a 10% excess would be £250.

Possible exclusions

Some policies come with certain exclusions, so be sure to always check your policy wording to be crystal clear on what we do and don’t cover. As with most insurance policies, for a claim to be accepted there must be signs of forced entry in cases of theft.

Know the value of your equipment

It's important that you keep your receipts from any purchased items and photographs of the equipment. Doing so could help you get a claim settled faster. Over or underestimating the value of your tools could lead to paying too much, or not having enough cover should you need it.

What types of business insurance can I add this to?

You can add this to any of our covers, to create the right policy for your company – meaning you only pay for the things you need.

Professional indemnity

Given advice that causes financial loss to your clients and results in a claim? Cover legal fees and compensation payments with professional indemnity insurance. With optional add-ons, you can also protect your business in case of breach of confidentiality, loss of documents or dishonesty of your employees.

Find out more about professional indemnity insurance

Employers’ liability insurance

If you have employees, contractors, casual workers, or temporary staff, it’s a legal requirement for you to take out employers’ liability insurance. It covers you for up to £10 million for any claims from staff may become unwell or suffer an injury as a result of working for you.

Find out more about employers liability insurance

Public liability insurance

You’re responsible for the welfare of every customer or visitor. Public liability keeps you covered for up to £10 million* if a member of the public is injured or their property gets damaged while dealing with your business.

Find out more about public liability insurance