Do I Need Insurance at a Coworking Space?

This shift shows a move towards more adaptable work setups. But do you need insurance at a coworking space? Let’s explore why having insurance in coworking spaces is important to make sure everyone stays protected while enjoying the perks that come with these modern work environments.

Understanding the risks in coworking spaces

Coworking spaces are unique environments offering shared resources for a diverse mix of occupants from different industries. These vibrant settings are great for networking but come with their own set of risks.

Common issues include the increased risk of theft or damage to property due to open plan nature of shared working areas, cyber security and liability concerns. Damages can also occur easily. For example, a freelancer working beside you could accidentally break your expensive office equipment, leading to hefty repair costs.

Do you need insurance at a coworking space? Absolutely. Insurance can help protect against these risks, ensuring you can focus on your work without worrying about unexpected setbacks.

Types of insurance needed

Public liability insurance 

Public liability insurance covers claims of accidental injury or damage caused to others as a result of your business practices. It can be beneficial in coworking spaces where accidents can happen.

Where you are at fault, public liability protects you for the financial implications of compensation payments awarded by courts, subject to the limit of your coverage.

Professional indemnity insurance 

Professional indemnity insurance is helpful to have for service-based businesses. It can cover claims of negligence or mistakes. For example, if a consultant gives incorrect advice or a designer delivers poor work, this insurance protects against legal defence and compensation costs.

Contents insurance 

Contents insurance, which can be part of office insurance, is vital for protecting personal and business equipment within coworking spaces. Office package policies can include ‘full theft cover’ covering claims in ‘self-contained’ offices, where there is no evidence of forcible entry or exit. However, this is not available in shared accommodation.

Employers' liability insurance 

Employers' liability insurance is a legal requirement for businesses with employees, even in a coworking setting. It covers claims if an employee is injured or becomes ill due to their work due to your negligence.

Cyber insurance 

Cyber liability insurance is increasingly relevant in coworking spaces with shared networks, protecting against data breaches and cyberattacks. It covers the costs of recovery and any legal ramifications, ensuring your business's digital assets are kept safe and secure.

Factors to consider when choosing insurance

When deciding on the type of insurance you need, a good first step is to assess your specific requirements based on the nature of your business.

For instance, a tech startup might prioritise cyber insurance, while a consultancy business might need professional indemnity insurance.

Consider your coworking space’s security measures and how they might impact your security needs. Does it have surveillance cameras and access controls? Good security can lower your risk and potentially reduce premiums.

Finally, understand the terms and conditions of the coworking space agreement when it comes to insurance. Some spaces may require certain coverages, so ensure you’re compliant and adequately protected to enjoy a worry-free and productive work environment.

Practical tips for coworking space users

There are a number of things you can do to try to protect yourself when using a coworking space.

1. Assess your current coverage to identify any gaps that could leave you vulnerable to claims. This helps ensure you’re not taken by surprise when unexpected incidents occur. For example, are there any restrictions to theft cover from working in shared office space?
2. Consult with an insurance broker or provider to tailor policies to your specific requirements, making sure that your demands and needs are identified and adequately protected.
3. Regularly review and update your insurance policies as your business needs and coworking arrangements change. This keeps your coverage current, providing peace of mind and allowing you to focus on your work without worrying about potential risks.

Is your business covered?

Having appropriate insurance in a coworking space is a helpful step to protect against things like theft, damage, liability and cyber risks. Take proactive steps to secure your business interests and understand the extent of cover provided.

Get your business covered with our insurance policies. Protect your business and focus on what you do best.

Public liability insurance from Towergate

You can obtain a public liability insurance quote from us today either online or by phone on 0330 818 9929.

Professional indemnity insurance from Towergate

Professional indemnity insurance can be offered by us: request a quote online or call us on 0344 892 1664.

Employers’ liability insurance from Towergate

You can obtain an employers’ liability insurance quote from us today either online or by ringing us directly on 0330 808 7567.

Cyber liability insurance from Towergate

Get a cyber liability insurance quote from Towergate online or by calling 0333 060 8275.

About the author

Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has over 20 years' experience as a residential landlord.