Sharing a business space can help reduce costs, but it also comes with hidden financial risks. If you’re planning to share your office with another business or professional, it’s crucial to have the right insurance coverage to protect your interests.
Assess Your Current Policy
Your existing business insurance policy might not fully cover you if you’re sharing space with another professional or business. While sharing overhead costs can lead to significant savings, it’s important to consult with an insurance expert to ensure your business insurance and casualty insurance policies provide adequate protection against the liabilities associated with a shared space.
Conduct Due Diligence
Before agreeing to share office space, perform thorough due diligence. Investigate the credentials, professional reputation, credit rating, and references of your potential office mate. This step is crucial to protect yourself from potential liabilities. Pay close attention to leasing agreements, shared employees, and business liability insurance.
Understand the Legal Issues
When sharing expenses for employees like receptionists, assistants, or bookkeepers, it might appear that the shared space operates as a single legal entity, which can lead to legal complications. It’s vital to review your business and casualty insurance policies once you’ve completed your due diligence. Professionals such as doctors, therapists, and lawyers could be at risk of lawsuits due to “vicarious liability” for actions taken by a co-working professional.
Protect Your Business and Reputation
Protecting your business, professional practice, and reputation is paramount. We specialize in providing insurance solutions for professionals planning to share office space. It’s essential that your insurance policies are updated to reflect your current situation and shield you from any liabilities created by your office-sharing arrangement.
If you have concerns about your insurance coverage and the necessary adjustments for sharing office space, contact us for immediate assistance. We can review your current policies and advise on the changes needed to safeguard your business or practice effectively.