AFCA Complaints Trends Are a Timely Reminder for Office-Based SMEs

Many office businesses carry a package of covers across property, contents, business interruption, public liability, cyber and professional indemnity. These policies can work together, but they do not all respond in the same way. A water leak that damages computers, a theft of portable equipment, a client injury in a meeting room or a cyber incident that halts operations may each trigger different sections, excesses, exclusions and evidence requirements.

The complaints trend is an extension of earlier concerns about industry standards, particularly around how clearly insurers communicate with customers and how consistently claims are handled. For SMEs, however, there is also a practical lesson: do not wait until a loss occurs to understand what your policy actually says. Waiting periods, sub-limits, definitions of insured events, maintenance exclusions and proof-of-loss requirements can all become important at claim time.

Business interruption remains a common pressure point for office operators because the financial impact of a disruption is not always obvious at renewal. Lost revenue, temporary relocation, replacement equipment, staff downtime, specialist IT recovery and additional operating expenses can quickly exceed the amount originally expected. Businesses should periodically estimate appropriate sums insured using current replacement values and realistic recovery periods rather than relying on last year’s figures.

Record-keeping is equally important. Office tenants and owners should keep updated asset registers, invoices for major equipment, lease details, maintenance records, cyber security procedures and photographs of fit-out and contents. Service-based firms should also retain engagement letters, client instructions and change approvals, especially where professional indemnity exposure exists. These records may not prevent a dispute, but they can reduce uncertainty and help support a claim with clearer evidence.

The other takeaway is to ask questions before renewal. If a policy term is unclear, clarify it in writing. If a sub-limit seems low, test whether it reflects the business’s current operations. If new software, hybrid working, outsourced providers or additional premises have changed the risk profile, make sure those changes are disclosed. The most useful office insurance policy is not necessarily the cheapest one; it is the one that is understood, current and capable of responding when the business is under pressure.