Hey everyone,
I’ve been trying to wrap my head around whether or not I really need commercial insurance for my situation, and honestly, it's been a bit confusing. I run a small design studio with three part-time employees, and we rent a floor in a shared office building. We don’t really have clients coming in and out often—it’s mostly online work—but we do have some expensive equipment and software licenses.
The building management recently mentioned something about “liability” and even suggested I look into commercial strata insurance. I always thought that kind of insurance was more for big operations with foot traffic or physical products. So now I’m wondering: in what scenarios is commercial insurance truly necessary? Is it just for brick-and-mortar shops, or does it also apply to setups like mine?
Appreciate any insights from those who've dealt with this.
Jumping in here—I work as an accountant and have a few clients with office-based setups like yours. From what I’ve seen, the real deciding factor on whether you need commercial insurance isn’t how many employees you have or how many clients visit you in person. It’s more about your contractual obligations, the value of your assets, and the type of space you operate in. In many leases, landlords require tenants to have certain types of coverage. Sometimes that includes general liability, and in multi-tenant buildings, commercial strata insurance becomes relevant, especially if common areas or the building structure are involved. Your business might not directly deal with the public, but it still occupies physical space, and any damage—fire, theft, electrical issues—can turn into a costly affair really quickly. Even more so if it spreads to other units. Another thing: business interruption is often overlooked. If something happens in the building that makes your space temporarily unusable, having insurance could mean the difference between closing for a week or staying afloat while things get sorted. So it’s less about whether your company is “big enough,” and more about whether you can afford to take on the risk if something goes wrong.
Hey, I was in a similar spot not long ago—freelance video editor with a small rented studio. I didn’t think much about commercial insurance until the landlord brought up property responsibility. Even if your work is mostly digital and your employees don’t interact with the public directly, you’re still running a business in a commercial space. That alone creates a legal and financial layer you have to account for. For example, if someone from another office spills coffee and it ruins your editing gear—or if there’s water damage from a shared pipe—you’ll want to know who’s liable. That’s where something like commercial strata insurance comes in. It’s designed for properties that have multiple commercial tenants, like shared buildings or retail complexes, and covers shared risks across the entire strata property. You wouldn’t want to be caught footing a repair bill for something that technically isn’t your fault but still affects your unit. Also, if a courier trips over a cable while delivering equipment to your space, you could be held responsible even if they’re not your employee. Commercial insurance typically covers those kinds of third-party liability issues. It’s not just about scale—it’s about your exposure to risks tied to the property and your operations.