What is a coworking space?

A coworking space is a shared workspace where individuals from different organizations and professions work together in a communal setting. Coworking spaces are designed to provide a collaborative and flexible work environment that allows people to work independently or as part of a community.

Hot-desking is a workspace arrangement in which workstations are occupied on an as-need basis by various people at various times. Usually, the goal is to reduce redundant office space in order to maximise space efficiency and lower real estate costs. Hot desks can be used in both coworking areas and private offices. Hot-desking is frequently associated with an increase in employee productivity and cross-disciplinary collaboration.

Startup essentials: Your 2025 guide to business insurance in Singapore

Post on April 30, 2025

Running a business in Singapore is exciting, but without the right protection, a single hiccup can turn into a major setback. Whether you're a startup founder, freelancer or small business owner, having the right insurance can mean the difference between a minor hiccup and a major setback. From accidents and legal disputes to cybersecurity threats and employee claims, business insurance is a smart (and often necessary) part of setting up shop.

So, what kind of coverage do you really need? Here’s your 2025 guide to business insurance in Singapore, tailored to those working from coworking spaces or managing lean teams on the go.

Why business insurance matters for your startup

Singapore may be one of the easiest places in the world to start a business, but even the most agile entrepreneur needs a safety net. With the rise of digital businesses and remote work, founders are exposed to new types of risks, from online data breaches to public liability issues that come with hosting events. In fact, according to QBE’s 2024 Singapore SME Survey, 77% ofsmall and medium-sized enterprises expressed moderate to high concern about potential income loss due to business interruptions. Yet, only 22% had policies in place to cover such events.

And while coworking spaces (like those available on workbuddy) offer general building coverage, that usually doesn’t extend to your business operations, equipment, or legal liabilities. Having your own protection is a key step in running your business responsibly.

Also read: A practical 10-step guide to starting a business in Singapore

Essential business insurance types in Singapore

1. Public liability insurance

Public liability insurance covers your business if a third party — like a client, supplier, or member of the public — is accidentally injured or suffers property damage due to your business activities. For example, if you’re setting up a booth at a pop-up market and a passerby trips over your display and gets injured, this insurance could cover the medical costs and any resulting legal claims. This type of coverage is especially important if your business regularly interacts with the public, whether at events, exhibitions, in your office or client locations.

Tip: Even if your venue or event space has general liability coverage, it usually won’t extend to your individual business operations, so it’s wise to have your own protection in place.

2. Professional indemnity insurance

If you provide advice or services — think consultants, creatives, or developers — this is essential. It covers legal fees and damages if a client claims you gave negligent advice or made a costly error. In Singapore, some regulated professions (like financial advisers and lawyers) are required by law to carry this type of coverage.

3. Work Injury Compensation Act (WICA)

If you have employees, you’re legally required to insure them under the Work Injury Compensation Act (WICA). This covers medical expenses and compensation for work-related injuries and diseases. More on WICA via MOM.

4. Health insurance for teams

Whether you’re a team of two or twenty, providing basic medical benefits goes a long way toward retaining top talent. A recent survey by Prudential revealed that 71% of employees consider medical insurance coverage as the most valued benefit, surpassing other perks like critical illness insurance. Many insurers in Singapore offer group health plans tailored to SMEs, which can include hospitalisation, outpatient GP visits and even dental add-ons. Services supporting mental health and psychological wellbeing are also increasingly recognised as vital. Popular local providers include NTUC Income, Singlife, and Great Eastern.

5. Cyber liability insurance

With the rise of remote work and digital-first businesses, cybersecurity threats are a growing concern. This type of insurance covers losses from data breaches, ransomware, and other digital threats. For SMEs looking to offset some of the cost, IMDA’s Productivity Solutions Grant (PSG) subsidises cybersecurity tools and can be used alongside insurance coverage.

6. Commercial property or equipment insurance

If you rely on expensive tech, photography gear, or design equipment, protect your tools. Even if you're working out of a coworking space, this coverage ensures you’re not left out of pocket due to theft or damage. Some insurers offer policies designed specifically for mobile or flexible workspaces.

Insurance options for SMEs or coworking businesses

Operating from a shared workspace? You might not need a full office policy, but don’t assume your coworking provider has you covered. While workbuddy’s partners offer top-tier facilities and general safety, tenant-specific protection — especially if you're client-facing or hosting events — is on you. Look for insurers offering SME or freelancer-friendly packages. NTUC Income and Etiqa, for instance, offer flexible plans that cover multiple needs (public liability + cyber + equipment) in one package.

Freelancer-friendly insurance in Singapore

Many solo founders assume insurance is only for big businesses, but freelancers are just as vulnerable. A few local insurers now cater specifically to gig workers and freelancers: consider Singlife’s partnership with Doctor Anywhere, which offers affordable health coverage for self-employed individuals, or NTUC Income's Freelancer & Self-Employed Package, which bundles health and liability protection. Online platforms like Tiq by Etiqa also allow you to customise plans with no long-term commitments.

Also read: Mental health tips: For freelancers, by freelancers

Peace of mind, wherever you work

Business insurance isn’t about expecting the worst; it’s about protecting the best of what you’ve built. With a workbuddy membership, you can run your business from over 50 coworking spaces across Singapore. Pair that freedom with the right insurance policies, and you’ve got the ultimate setup for growth, agility, and peace of mind.

Enjoy a free week on workbuddy today.

Disclaimer: Information in this article is accurate as of April 29, 2025. Always consult a licensed insurance provider or legal advisor for the most up-to-date policy requirements and recommendations based on your business type.