Insurance Options for Coworking Spaces
Coworking spaces have become increasingly popular. Many entrepreneurs, start-up businesses, and freelancers have turned to coworking spaces to conduct their daily business. As a potential owner of coworking spaces, you have recognized this growing trend and have decided to invest in a coworking space that will allow others to be productive and creative with their work. It is an exciting opportunity for many to own and manage a coworking space, but have you thought about the necessities needed to do so, such as insurance?
For many, this might be a new or unheard of idea. It begs the question, why do you need insurance for your coworking space? It turns out having insurance for your coworking space is an important feature and one that will help and protect you in the long run.
Why Do I Need Insurance for My Coworking Space?
It is common knowledge for many that coworking spaces provide most of the office amenities and equipment you need to work. These might include desks, chairs, high-speed internet, and snacks and beverages to name a few. But for the items that are not provided and covered by the workspace, such as computers, they do need insurance. This is to protect yourself if your items are damaged or stolen, or if you accidentally cause harm to yourself.
Types of Insurance for Coworking Spaces
Now that you understand your property is not typically covered in the coworking space, you might be thinking “What else do I need to know?” It turns out there are quite a few other things you should think about before purchasing your insurance. Understanding whether you need general liability insurance, professional liability insurance, or a business owner’s policy is essential. Knowing the kind of work, business, and coworking space you are offering will help determine what type of insurance is needed.
General Liability Insurance
A lot of businesses often purchase general liability insurance. Some consider it the “standard” type of coverage because it covers third party bodily injuries, damage, and advertising injuries such as slander, libel, and copyright infringement. This is important to have because if someone injures themselves in the coworking space, such as tripping over carpet or a loose wire, they could sue you for medical and legal costs. In addition, having general liability insurance can save you in other ways like having to pay for repairs in a new machine breaks down.
Professional Liability Insurance
Professional liability insurance is vital because this will protect you and your coworking space if a client feels you have not lived up to the professional standard you have advertised. This could be as simple as unfinished projects, or a making a mistake on a job, or perhaps not providing an adequate working environment. This type of insurance will not only protect you, but it also protects your clientele as well since they can recoup any money lost from professional services (or lack thereof) committed on your end.
Business Owner’s Policy
Business owner’s policy, or BOP, is a combination of general liability and commercial property insurance. For someone who conducts business from a coworking space, this type of insurance might be of significant value. It will not only protect you from any injuries that might occur within the coworking space to another individual, but it will also protect you from any harm, damage, or theft that might occur within the commercial property itself. This would include if your computer is damaged or stolen within the coworking space, something that is rarely covered by the commercial property itself.
Better Be Safe Than Sorry
No matter how comfortable you feel in your coworking space, or how “secure” the coworking space may advertise, it is still important to have insurance if you plan on working within one. Having too much coverage is not a bad thing, and in the long run, it could save you and your business, thousands of dollars.