A big percentage of companies have moved into coworking spaces that are more cost-effective and tenant-friendly. Coworking office arrangements offer plenty of amenities. Community office managers go to great lengths to make sure businesses are enjoying all the benefits coworking spaces provide. However, it’s important for business owners not to forget there are still risks involved in this type of office space. In any public place, property can become damaged, lost, or stolen. These types of risks still exist for companies occupying shared working spaces so it’s worth buying coworking insurance.
Let’s review why coworking insurance should be a priority for every business owner operating from such a workplace.
Why Get Coworking Insurance?
Coworking spaces are popular, particularly for start-up ventures, because they provide common office equipment and conveniences. Things like high-speed Wi-Fi, desks and chairs, snacks and coffee machines, and meeting rooms usually come with your coworking lease. Usually business owners have a few different business and liability insurance policies, per industry and local regulations.
Even though the coworking office manager may have property insurance for the building it doesn’t mean your business is protected too. In fact, many companies that operate from a coworking space should review their leasing terms for any clauses restricting their damages. That means if a hurricane or fire then property insurance for the coworking space will help restore the building and anything it owns. However, business owners renting workspace could be out-of-luck when it comes to replacing privately owned laptops, business data, inventory, marketing materials, and other items. These are usually not covered by a coworking property insurance policy held by the building owner.
You can see why getting your own business insurance for the coworking space can be so valuable in the event of a natural disaster, theft, or accident
Types of Business Insurance
Now that you know why coworking companies should get their own insurance coverage, we can take a look at a variety of policies and their features. Knowing whether your business needsProfessional Indemnity InsurancePublic Liability Insurance or Business Insurance is the first step before purchasing any coverage.
Professional Indemnity Insurance
Professional Indemnity Insurance protects business owners, whether they operate from a coworking space or not, if a client believes the business didn’t live up to its professional obligation. Customers that allege a project wasn’t finished, a mistake was made, or not creating a professional business environment. This type of coverage will protect your business and employees, as well as any dissatisfied patrons. Your business can settle liability claims brought by a client without using business or personal funds.
Public Liability Insurance
A lot of companies buy Public Liability Insurance since it’s often considered the “standard” type of protection against third-party bodily injuries, damages, and advertising injuries like slander or copyright infringement. Public Liability Insurance is important because if a customer gets hurt while in your coworking space, such as tripping over an extension cord or box. If something like this happened then your client could hold you liable for their medical bills and any lost wages. Finding your business in this scenario without the proper insurance could put your company at risk.
Better Safe Than Sorry
No matter how secure you feel the coworking space is for your business and employees, it’s always a good idea to have insurance to protect your company and its assets. For coworking managers and business owners, it’s never the best option to rely on the property’s insurance plan, particularly if you are only a tenant. In many cases, business owners leasing a coworking office space won’t even be protected under the landlord’s coverage. Accidents happen every day and so it’s vital for all parties (property owners, business owners, and coworking members) to be protected when trouble arises. You can never really have too much coverage, and in the long run, it will contribute to your company’s long-term success.