At a glance
Business insurance for co-working should cover the unique risks that come with sharing a workspace.
These include lack of privacy, security threats, theft and damage to belongings.
Key cover includes public liability and contents insurance.
Tell your insurance provider if you’re moving to a co-working space to make sure your policy stays valid.
What is insurance for co-working spaces?
Business insurance for co-working spaces is designed to protect against the specific risks of shared environments.
Communal hubs bring together professionals from a range of industries under one roof, offering shared resources and encouraging collaboration. While great for networking and creativity, co-working spaces also come with challenges. For instance, someone working alongside you might see sensitive information or spill coffee on your laptop.
The right insurance helps protect against such scenarios. You can tailor a business insurance policy to suit your business type, size and set-up.
Do I need insurance in a co-working space?
If you’re joining a shared office space, you might need to have certain types of insurance in place as part of your membership agreement.
But even if it’s not mandatory, it’s a good time to review your business insurance as part of your overall risk-management strategy.
If you’re moving your existing business to a co-working space, contact your insurance provider to update your policy. You’ll want to be sure it covers your new working arrangement.
Do co-working spaces provide insurance?
The space itself should already be insured by the building’s owner, but they generally don’t provide insurance for your personal equipment or liability.
When you join, ask the owner what insurance cover they have in place, so you’re clear about what you need to take care of yourself to be fully covered.
What business insurance do I need for a co-working space?
If you’re looking for insurance for a co-working space, here are a few types to consider:
Employers’ liability insurance
If you employ anyone – even if it’s just one person – you’ll need employers’ liability insurance. This is a legal requirement, wherever you’re based, and is designed to protect you against claims if an employee is injured or becomes ill while working for you.
The only potential exception is for those who employ immediate family members. However, limited companies, with multiple directors, are legally required to have employers' liability insurance. This is regardless of immediate family members being employed.
Public liability insurance
It’s possible the owner of the co-working space will have this cover, but you’ll need to check. Public liability insurance can cover you against claims if your business activities cause accidental injury or damage to someone’s property.
For example, if a visitor trips over a computer wire while walking past your desk, it could cover medical and legal fees if they make a claim against you.
Business contents insurance
This covers the physical equipment you use to run your business, including laptops and phones, against damage, loss and theft. Even if the building owner has their own insurance, it’s unlikely to cover your equipment.
Check whether accidental damage is included in the policy. If not, you may want to add it if you’re worried about spilt drinks, for example.
Business interruption insurance
Incidents such as a fire or flood can make your co-working space uninhabitable for a while. Business interruption insurance can cover you for lost income and relocating to another office space if something goes wrong.
Cyber insurance
Working with others in a shared space can present cyber security risks.
What if the shared WiFi network is hacked? Or someone steals valuable information by looking over your shoulder when you’re using your laptop? Cyber insurance can cover you against a range of risks.
Please note, you can’t currently compare cyber insurance with us.
Pros and cons of co-working spaces
What are the benefits of co-working spaces?
Top-notch amenities such as high-speed broadband, modern meeting rooms and swanky coffee-making facilities
Flexibility to take on more space if you need it and less if you don’t
Reduced overheads from not directly maintaining a premises and paying for utilities
Networking events and social activities, so you can broaden your professional circle and make contacts with other business owners and freelancers.
What are the drawbacks of co-working spaces?
Open-plan layouts with constant noise and people can make it hard to concentrate
Personal belongings and company equipment are at greater risk of theft and vandalism
Data and sensitive information can be more vulnerable to data breaches and malware attacks.
How can you increase your security in a shared workspace?
There are several factors to consider when choosing and using a co-working space:
Check out the building's security. Look for offices where access is controlled by electronic passes, where there’s a reception, and where entrances and exits are well lit.
Choose a space with lockers so you can store your valuables safely when you’re not using them. Alternatively, you could buy a cable lock to attach your laptop to your desk.
Be aware of cyber security issues when using a shared space. At the very least, make sure the WiFi network is password protected and lock your screen if you’re leaving your computer.
Looking for business insurance cover?
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FAQs
What should I do if there’s a security breach while I’m working in a co-working space?
It sounds dramatic, but corporate espionage can be an issue in co-working spaces, which are often full of small, innovative companies trading in fresh ideas.
There are a few safety measures you can take to protect yourself in the event of a security breach:
Change your passwords regularly – if you have trouble remembering them, you can always use a password manager
Update your computer software, so it has the latest security updates
Always lock your computer screen when you’re away from it.
Is business insurance a legal requirement when working in a co-working space?
Business insurance isn’t a legal requirement unless you employ someone, in which case you’ll need employers’ liability insurance.
And depending on your line of work, you might find that your clients expect you to have public liability insurance in place.
But it makes sense to have cover for your contents to protect yourself from the financial consequences if your equipment is damaged or stolen.
And business interruption insurance can help protect you financially if other unforeseen circumstances stop your business from operating.
Do I need co-working space insurance if I run a start-up?
Business insurance for your start-up can protect against various risks, even if you don’t have a physical premises of your own. For instance, a tech start-up might prioritise cyber insurance.
Many companies that base themselves in co-working spaces are start-ups. Some insurance providers specialise in insurance for start-ups, so it’s worth researching to check what’s out there.
What happens if I only work in a co-working space from time to time?
If you’re mainly home-based and only doing some of your work in a co-working space, you might find it makes more sense to get insurance to cover your possessions outside the home.
This could already be included in your home contents insurance or you may be able to add it on. Alternatively, you can look into standalone gadget insurance to cover your tech.
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With over 10 years’ experience writing, editing and managing content, Emma has written and edited for some of Australia’s leading financial comparison brands, including Savings.com.au, Your Investment Property Magazine, and Your Mortgage.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
