Written by Rebecca Hosley | Insureon
When you work in a coworking space, most of the tools and equipment you need to run your business are provided for you, such as:
- Desks and chairs.
- Internet connection.
- Comfy furniture.
- Unlimited coffee!
But there are some things you need to provide for yourself, like a laptop and small business insurance. Even though the owner of the coworking space probably has insurance, their coverage won’t necessarily extend to your business. If you want protection for mistakes you make and property you damage, you’re going to need your own coverage.
Let’s take a look at some of the small business insurance policies startup founders may need, even in a coworking space.
General Liability Insurance
This is the policy most startups purchase first. General liability insurance covers many common problems a business owner might face:
- Third-party bodily injuries.
- Third-party property damage.
- Advertising injuries, like libel, slander, and copyright infringement.
For example, let’s s say you have a meeting with a client at the coworking space. On their way into the conference room, the client trips over a loose bit of carpet and falls, breaking their wrist. Your client may sue the coworking space, but they could also sue you. If you have general liability coverage, it can help pay for your client’s medical bills and your legal costs.
General liability insurance can also protect you in other ways, like paying for repairs if you break the snazzy new color printer at the coworking space.
Worth noting: If you are thinking about coworking but haven’t made the leap yet, read “Things You’ll Wonder Before Your First Day At a Coworking Space” for an idea of what you can expect.
Professional Liability Insurance
You probably already know that while most clients will be thrilled with your work, there’s always one or two that may never be satisfied. Unfortunately, disgruntled clients might sue if they don’t think you lived up to your end of the professional bargain.
Professional liability insurance can help cover your legal expenses if a client sues, claiming that you…
- Missed a key deadline.
- Didn’t finish a project.
- Made a mistake.
Professional liability insurance may even help you land more work. Many clients won’t do business with companies that don’t have this type of coverage. Having this policy signals that clients have a way to recoup their losses if your professional mistakes cost them money.
For more missteps to avoid, check out “5 Worst Financial Mistakes Startups Make”.
Business Owner’s Policy
If your computer is damaged or stolen in a coworking space, it probably won’t be covered by the space’s commercial insurance. To protect your stuff, you may want to purchase commercial property insurance. It can pay to repair or replace property owned by your business (e.g., laptops, tablets, phones, etc.) when it’s stolen or damaged by wind, fire, and more.
Your business may even be eligible for a discounted insurance bundle called a business owner’s policy (BOP), which combines general liability and commercial property insurance at a reduced rate.
For more help picking the appropriate policies for your startup, check out Policy Buddy. This interactive tool can help you figure out what policies benefit your startup in two minutes.
About the Author
Rebecca Hosley is a content writer for Insureon, an online small business insurance agency. She is based in Chicago and writes frequently about small business insurance and tech startups.