5 Common Exclusions in Office Building and Contents Insurance You Should Know

Though these policies have extensive coverage, they also have exclusions that may catch business owners off guard when they're making claims.

Regardless of whether you have a corporate office, a rented small office, or a shared office in the UAE, you must be aware of what is excluded under your policy. Knowing this can help you plan, avoid claim rejection, and get your business completely covered.

Here are five common exclusions under office building and contents insurance that you should be aware of:

1. Wear and Tear or Gradual Deterioration

Insurance is designed to cover sudden and accidental events—not gradual deterioration over time as a result of age or neglect. If your office air conditioning system breaks down from age or your carpets deteriorate from years of sunlight, these are typically not covered.

Why it matters:

Regular maintenance and equipment replacement are your responsibility. Insurers can also deny claims if damage occurs from neglecting to maintain the building properly.

Pro tip:

Keep maintenance records and schedule regular inspections. It may avoid conflict in the event of a claim.

2. Electric or Mechanical Breakdown Without External Cause

If office equipment like servers, printers, or lifts break down due to internal faults (not fire, water, or theft), most general insurance policies will not pay for it.

Why it matters:

Businesses relying on electronics and digital infrastructure need to consider this carefully. Repairs can be costly and disruptive.

What to do:

Consider a machinery breakdown or equipment protection add-on to your contents insurance policy. In the UAE, insurers like Shory offer options to cover such gaps.

3. Acts of War or Political Unrest

While uncommon, losses caused by war, civil unrest, or terrorism are typically excluded unless your policy has endorsements. This is particularly the case for properties in high-profile or diplomatic locations.

Why it matters:

Major office buildings of firms and embassies are perhaps more vulnerable to such events. It is important to know the exclusion while assessing risk.

What to do:

Verify with your insurer for terrorism cover extensions, which may be available in the UAE as an add-on to a business insurance policy that can be customized according to individual needs.

4. Vacant Office Blocks

Most insurers will not cover losses sustained when the property has remained vacant for a considerable period (usually 30 days or more), unless notice is provided or special conditions are made.

Why it matters:

With hybrid work patterns and companies cutting back on office space, unoccupied units are more common than ever.

What to do:

Inform your insurer if the premises will be unoccupied and look at vacancy cover if you anticipate extended periods of non-occupation.

5. Theft by Staff or Insider Fraud

Normal office contents insurance tends to cover theft—but not if the loss is due to your own staff unless you have purchased a special fidelity or employee dishonesty cover.

Why it matters:

Small companies and startups usually operate on a lot of trust, but fraud and theft are still risks.

What to do:

If your business handles valuable inventory, cash, or sensitive information, add employee dishonesty insurance to your risk management plan.

Final Thoughts: Read the Fine Print

Office contents and building insurance is a definite requirement for any business trading in the UAE—but it's not a blanket policy. Being aware of what's excluded is as important as being aware of what's included.

If you're comparing office insurance policies, make sure you ask your insurer the following questions:

"What are the standard exclusions?"

"Can I customize my policy with additional cover?"

"What documentation do I need to provide in the event of a claim?"

Companies such as Shory make it easier for UAE-based businesses to compare, customize, and arrange office insurance online to provide peace of mind and ongoing cover.

Understand your risk, protect your business. Review your current policy today and talk to your provider about filling the gaps.