Pop-up space insurance and other considerations

Tenants entering into pop-up occupancy licence agreements need to consider liability and insurance, as well as other costs that may be incurred. The following is provided as a general guide.

Review the Suburban Shopfront Activation disclaimer before considering registering your interest.

Public liability insurance

Council’s sample pop-up occupancy licence clauses suggest the temporary tenant holds public liability insurance to cover potential liabilities to third parties for personal injury or damage to property (does not usually cover employees or volunteers).

Other common insurances

Other common insurances temporary tenants may consider taking out will depend on the activities being taken. For example:

  • selling products – if you are selling products you may consider product liability insurance to cover damage to people or property as a result of faulty products
  • providing services or advice - for temporary tenants that provide services or advice involving the use of some special skill or ability, professional indemnity insurance provides cover for loss that somebody may have sustained because of advice you gave
  • employing staff - if you are employing staff at your temporary premises, all employers must have workers’ compensation insurance.

Other insurances to consider may include contents insurance and window insurance.

Once you have a shop in mind, find out what kind of insurances are already in place by the property owner. The property owner often has building insurance and window insurance and may suggest that you pay a fee towards these insurances. Otherwise, you may need to get your own insurance to cover these items. You also need to decide whether you want to take out contents insurance.

Some insurers now offer specific insurance policies for pop-up shops to provide a combination of the insurances that you need.

Tenancy costs

While Council encourages property owners to adopt the sample pop-up occupancy licence clauses including those promoting a rent-free licence, there are costs that temporary tenants can expect to pay as part of a pop-up agreement. These may include:

  • rates – often called ‘outgoings’, property owners pay rates on their properties and traditionally pass this cost on to long term tenants. Property owners may require some contribution to rates in the pop-up licence
  • utilities – most property owners will want you to pay for electricity, gas, water and Wi-Fi costs while you are in their premises.

Retail costs

Retail costs may include:

  • shop fit-out – cleaning, painting, shelving/display furniture and visual merchandising
  • point of sale – store payment options such as EFT facilities.

Suburban Shopfront Activation disclaimer

Brisbane City Council provides no warranty regarding the suitability, accuracy, reliability, fitness for purpose, effectiveness, benefits of or outcomes from any content, products, information or materials provided through these webpages, forms and related documents in support of the Suburban Shopfront Activation Initiative. Participants use and rely upon the content, products, information and documents at their own risk.

Whilst Brisbane City Council will use its best endeavours, no responsibility is accepted for the suitability or fitness for purpose of any introduction, matching or partnering of property owners with interested start-ups, businesses for the vacant spaces and no endorsement or validation is implied or offered by Council by reason of that introduction. Participants must satisfy themselves through their own checks, enquiries and /or inspections in that regard.

Brisbane City Council provides no representation, warranty or guarantee as to any outcome, benefit or advantage, tangible or intangible, arising from or in relation to any opportunity or introduction offered, accepted or declined by a participant in the Initiative and Brisbane City Council accepts no liability for any loss, damage, debts, costs, or expenses incurred or attaching to a participant through its involvement with this Initiative.

Last updated:5 February 2020