Business contents insurance
What business contents insurance covers, what it costs UK businesses in 2026, and the factors that actually drive your premium.
Business contents insurance covers the moveable items you use to run your business: stock, tools, equipment, furniture, computers and your fit-out. It does not cover the building itself — that is buildings insurance, and if you lease your premises it is usually your landlord’s responsibility rather than yours. Almost every business needs contents cover, and a large proportion of the ones that have it are insured for a figure set years ago and never revisited.
Key takeaways
- Covers what you could carry out of the building, not the building itself.
- Cost is driven mainly by your sum insured, your trade and your premises — not by turnover.
- Underinsurance is the most common and most expensive mistake; average clauses cut claims proportionally.
- Refrigerated stock deterioration is a separate extension and is frequently missing.
What business contents insurance covers
A contents policy responds when the things you use to trade are damaged, destroyed or stolen. The standard perils are fire, flood, escape of water, storm, theft and malicious damage, and most policies can be extended to accidental damage. What counts as contents is broader than people assume: it includes your fit-out and any improvements you made to a leased space, which for a café or salon can be the single largest item on the schedule.
- Stock and materials — including seasonal peaks, which is when a loss hurts most.
- Tools, plant and machinery kept at the premises.
- Computers, tills, EPOS and card terminals.
- Furniture, fixtures, fittings and shop or salon fit-out.
- Tenant’s improvements — the money you spent making a leased unit usable.
What it does not cover
- The building structure — that is buildings insurance, usually the landlord’s on a leased site.
- Injury to customers or staff — that is public and employers’ liability.
- Loss of income while you cannot trade — that is business interruption.
- Items away from the premises, unless you add goods in transit or all-risks cover.
- Wear, tear and gradual deterioration — insurance covers sudden events, not ageing.
- Refrigerated stock spoiling due to a breakdown, unless deterioration cover is specifically added.
What it costs
For a small business, contents cover typically runs somewhere between £100 and £400 a year, but that range is wide because the drivers vary enormously. The single biggest factor is your sum insured — the total value of everything you are covering. After that comes your trade classification and your premises.
| Factor | Why it matters |
|---|---|
| Sum insured | The dominant driver. Insuring £50,000 of contents costs materially more than £15,000. |
| Trade | A café with a commercial kitchen carries more fire risk than an office of the same size. |
| Premises and location | Construction, flood risk and local crime figures all feed in. |
| Security | Alarms, shutters and approved locks reduce premiums and are sometimes a condition of cover. |
| Claims history | Recent claims raise the price; a clean record over several years lowers it. |
| Excess | A higher voluntary excess reduces premium — but only take one you could actually afford. |
Underinsurance is the expensive mistake, not overpaying
Most policies contain an average clause. If you insure £20,000 of contents when you actually hold £40,000, you are insured for half — and a £10,000 claim can be settled at £5,000, even though the loss was well within your sum insured. Value your contents at what it would cost to replace them today, at peak stock, not at what you paid.
Extensions worth asking about
- Deterioration of refrigerated stock — essential for any food business, and routinely omitted.
- Glass — shopfront glazing is a frequent, irritating and cheap-to-cover claim.
- Business interruption — the cover that keeps you solvent while you cannot trade.
- Goods in transit — if stock or tools travel with you.
- Money — cash on the premises and in transit, relevant to any cash-taking business.
Business contents insurance: frequently asked questions
How much is business contents insurance?+
For a small business, typically £100–£400 a year, though the range is wide. Your sum insured is the biggest driver, followed by your trade and premises. A small office insuring £15,000 of IT and furniture sits at the bottom of that range; a restaurant insuring commercial kitchen equipment and a full fit-out sits well above it.
Do I need contents insurance if I rent my premises?+
Almost certainly yes. Your landlord insures the building, not your things — and that includes any fit-out or improvements you paid for, which usually count as your contents rather than theirs. Check your lease: many require you to hold contents and liability cover to a stated minimum.
How do I work out my sum insured?+
Add up what it would cost to replace everything today, brand new, at your peak stock level — not what you originally paid, and not the depreciated value. Include fit-out and tenant’s improvements, which are the items most often forgotten. Then review it annually, because the figure drifts.
Is contents insurance the same as commercial contents insurance?+
They usually mean the same thing — cover for the moveable contents of a business premises. "Business contents" and "commercial contents" are used interchangeably by insurers. What matters is what is on the schedule, not the label on the policy.
Cover usually bought alongside this
How this page is produced
Written by My Energy Deals Ltd and reviewed by Arkwright Insurance Brokers Limited (FCA firm reference 434855).
mybusinessdeals is an introducer, not an insurer and not an FCA-authorised broker. This page is general information about types of cover, not a personal recommendation or advice on which policy to buy. Any policy is arranged by, and you contract directly with, our FCA-authorised partner or their panel. Premium figures are indicative market ranges, never a quote.
Last reviewed 3 September 2026.
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