A co-working space is a building shared by many businesses. Companies rent a space out to use based on their needs. The owner of the building handles many services provided. It also maintains the space. Individual companies can use this space as much or as little as they need to. But, what about business insurance in a co-working space? How does it work?
There are a few key things to keep in mind when using shared workspaces like this.
Do You Own the Space?
Business insurance is necessary for all companies no matter where you operate. What differs is the type of insurance you need at various locations.
If you own the co-working space and are renting out portions of it to others, you need property insurance. It helps protect the building itself. It can help to protect from fires and vandalism, for example. You also need coverage to minimize liability risks. If someone is walking in the the building, trips and falls on a broken carpet, and needs medical bills paid, you could be responsible. Building owners always need this protection.
Do You Use the Space?
If you simply use the co-working space, your needs may differ. You may no longer need protection for the building itself. It is not your responsibility to maintain it. However, you may still need protection for the space you lease. The process works much like apartment insurance or renter’s insurance. You may not have responsibility for the structure. However, chances are you have responsibility towards your own commercial risks.
Most co-working spaces distribute costs for business operation across the group. Most do not include complete business insurance protection. The property owner will protect its rights. It does not have an obligation to protect yours, in some cases. Your contract may differ. It is important to verify this information before assuming you have protection.
Also, note the importance of carrying other coverage beyond property and liability. You may still enjoy commercial auto coverage, workers’ compensation or business interruption protection. If you use equipment or have many locations, you may benefit from added protection here, too.
A co-working space can be a nice benefit when you use it properly. Work closely with a business insurance agent of your choice. Be sure this party represents you well. Then, select a policy designed to meet your company’s specific needs. You want to minimize any threat to your personal operations.