Coworking Space Business Insurance
Getting insurance for your coworking space is essential.
Coworking spaces need to be protected against things like personal injury claims, property damage claims, and crime (e.g., theft, data breaches, etc.).
For example, someone could steal property from the coworking space, or someone could fall and hurt themselves.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Coworking Space Business
General liability insurance is — generally speaking — one of the most important insurance policies for coworking spaces.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability insurance is an essential first step in protecting any company, including a coworking space business, most companies should go further. That’s because a general liability policy doesn’t protect against all types of liability a company may face.
For more complete protection, we recommend other types of policies as well, including:
- Workers’ compensation insurance
- Crime insurance
- Business interruption insurance
- Commercial auto insurance
If you shop around for business insurance, you’ll quickly realize that providers generally fall into one of two camps:
- Traditional insurers: Most people have heard of these companies because they include big names Nationwide that have been in business for a long time. That means they’re reliable and bring a lot of experience. They also tend to be more expensive, however, because they use human agents to sell policies at physical locations.
- Online insurers: By contrast, online insurers like Next and Tivly don’t have physical locations or use agents. Instead, they only have a web presence and sell policies using AI. Online insurers are often much cheaper than traditional insurers, plus they tend to be faster and more flexible. In particular, if you need a highly customized policy, an online insurer will provide it sooner and for less money.
Let's Find the Coverage You Need
The best insurers design exactly the coverage you need at the most affordable price.
Cost of General Liability Insurance
The average coworking space in America spends between $400-$700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a coworking space business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Find the Best Rate
Discover the best coverage at the lowest rate in our cheapest business insurance review.
Common Situations That General Liability Insurance May Cover for a Coworking Space Business
Example 1: A woman who purchases space from your business falls on some ice while walking in from the parking lot. She decides that your company is responsible for her injuries because you did not clear the ice and sues you. The general liability insurance you carry will pay for your legal defense fees, including the cost of a settlement if necessary.
Example 2: A competing coworking space business has decided that your new marketing campaign libels their business and sues you over it. The general liability insurance you have will pay for your legal fees in such a situation.
Example 3: One of your maintenance team members is working to fix a leaky sink in the restroom. He is rounding a corner in the building when he runs into a customer, knocking her to the ground. The customer breaks her wrist and asks that you pay for her medical treatment. The general liability insurance you carry will likely cover this expense.
Other Types of Coverage Coworking Space Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Property Insurance
All of the office furniture and other equipment you have purchased for your coworking spaces would be expensive to replace if you lose it in a fire or other disaster. Commercial property insurance is designed to protect your business in such a situation. If the loss occurs due to a covered event, you can file a claim and get financial help replacing your commercial property.
Workers’ Compensation Insurance
If an employee is hurt performing job-related duties, a workers’ compensation policy will pay for his or her medical treatment. It will also help to pay for lost wages for employees who cannot work while they recover from their injuries. Most states require employers to carry workers’ comp coverage.
Commercial Umbrella Insurance
The general liability insurance policy you carry will protect your business from most liability concerns, but it is possible for your policy limits to be exceeded in certain situations—like if you lose a big lawsuit. If the limits are exceeded, you will be left on the hook for whatever damages remain. However, if you have an umbrella policy, the policy will kick in to cover the excess expense.
Commercial Auto Insurance
If you have a car or truck that you use primarily for business, you need a commercial auto policy to protect the vehicle, the driver, and others on the road. The policy will pay for damages to your vehicle and to other vehicles if you are responsible for an accident. It will also pay for medical treatment for the injured.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your coworking space business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Coworking Space Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
We generally recommend that all companies, including coworking spaces, have business insurance before they start operating. It’s not a good idea to start a company without at least basic financial protection in place if someone files a lawsuit for personal injuries or another type of claim.
Moreover, most states require companies to purchase certain insurance policies before operating if they have employees or company vehicles.
Not necessarily. Certain exceptions may be written directly into your coworking space business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.