There are currently over 4,300 coworking spaces in the UK, with more opening each year.
Coworking spaces provide an affordable means for SMEs and startups to launch and scale, while also providing unique networking opportunities for freelancers, consultants, and other independent professionals.
But this new way of working creates new risks. If you own or manage a coworking space, in this post we will outline what insurance you will need to cover your coworking space, and the people that use it, against all risks.
Add Insurance Requirement To Your Membership Agreements
You should specify that anyone who joins your coworking space, whether they are an individual or an organisation, has adequate insurance to cover their own risks. This should be a requirement for all contracts, even if they only last for a few weeks.
Members’ insurance should cover:
- Their own property. e. Any stock, equipment, devices, or other items they bring to the coworking space.
- Their own liability. For example, any business that uses your coworking space should be covered for any accidents or incidents involving their own employees, or any clients they bring onto the premises.
This means that there will be less uncertainty surrounding who is liable for certain claims. But as well as requiring your members to take care of their own cover needs, you will need your own insurance to cover the areas of your operation for which you are personally liable.
Insurance Cover Coworking Spaces Need
In addition to requiring your members to hold their own insurance, as a coworking space, you’ll also need:
- Employers liability insurance
- Public liability insurance
- Buildings insurance
- Contents insurance
- Business interruption insurance
- Cyber Insurance
We’ll cover each of these in more detail below.
Employer’s Liability Insurance
If you employ any staff to manage your coworking space, then you have a legal duty to get employer’s liability insurance. This will cover your employees for any accidents or injuries they may experience while working for you.
This cover could extend to:
- Cleaning staff
- Caretakers and maintenance staff
- Onsite tech support
- Receptionists
- Catering staff
Public Liability Insurance
Your members should get liability insurance to cover their employees, and any other individuals they bring to your coworking space. But you should still get your own public liability insurance to cover any other members of the public who may visit your premises.
This could include:
- Contractors
- Delivery drivers
- Prospective clients, who visit your coworking space to see if it is right for them
Public liability insurance will cover these individuals for any accidents or injuries they experience while spending time at your coworking space. This will also include cover for their personal property.
Buildings Insurance
This will cover the structure of your coworking space, including any interior fixtures and fittings such as doors, staircases, elevators, and so on. It may also cover certain exterior features, such as car parks, gardens, and outdoor structures.
You will likely be required to get buildings cover for your coworking space as a condition of your rental or mortgage agreement.
Contents Insurance
As we mentioned above, you should specify that anyone who uses your coworking space takes responsibility for their own property while onsite. But you should still get your own contents insurance to cover any equipment or furniture you provide.
This might include:
- Any equipment used by your onsite staff.
- Any stock you store onsite, such as stationery.
- Furniture, including office furniture you provide for your working spaces, and any chairs, tables, or other items you provide in your communal spaces.
Business Interruption Insurance
If a fire, a flood, a break-in, or another incident temporarily prevents you from operating your coworking space, business interruption insurance can cover your overheads for as long as it takes for you to recover.
For coworking spaces, a business interruption insurance policy may include cover for lost income. You may have to refund your members for any time they have paid for, but which they were not able to use. And of course, you will not be able to gather any income from members while your space is closed.
Cyber Insurance
Finally, all businesses are vulnerable to cybercrime, and coworking spaces are no exception.
You might require your members to cover their own liabilities for data loss or cyberattacks. But you should also get your own cover in place, just in case cybercriminals ever target your systems. In this case, your cyber insurance can cover the costs of your response to the attack, along with any legal fees or compensation payments that may arise as a result of the breach.
Read our full guide to cyber insurance for businesses.
Get Tailored Insurance For Your Coworking Space
James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you access the specialist insurance you need for your coworking space at the best price.
Get a free quote today. If you would prefer to speak to someone call us on 0330 024 0755 or email enterprisenb@jameshallam.co.uk