Why Does My Startup Need Insurance?
Starting a company from scratch is hard work. That’s why it’s important to have insurance. You don’t want your blood, sweat, and tears to go down the drain if someone makes a claim against your business. Insurance for startups and new businesses is extraordinarily important. It’s in these beginning stages where something could make or break your business. Don’t let a lawsuit or claim derail you from achieving your dreams. Insurance can help financially protect your startup. These are some common business insurance policies that you should consider:
This type of coverage helps protect your business in the event of property damage or bodily injury. For instance, if a customer walks into your store and slips and gets injured, you could be faced with a claim. General liability coverage will help cover the associated fees with the claim. This could include legal dense fees or settlements. It can also protect you from things like property damage, or slander. Depending on the nature of your business, your coverage limits may differ. This type of policy is typically pretty inexpensive for a startup. However, this general liabilityis insurance that all small businesses should have.
Commercial property insurance is coverage that startups should consider. Commercial property will help protect if there are lost, damaged, or stolen goods. It can help cover things like the physical building, equipment, computers, and inventory. This is extremely important if your business deals with physical goods or has a physical store or location. Commercial property can financially help with repair or replacement costs of your losses. It can also help with business interruption, where your business cannot operate due to circumstances like a fire.
This type of coverage is essential if you have employees. In fact, most states require that you have workers comp. Workers compensation is coverage to help protect your employees if they get injured or sick while on the job. For example, if your worker is climbing a ladder, falls, and gets injured, workers comp can help. It can help cover medical expenses, help with legal costs, and help pay your employee wages while they are unable to work. Unfortunately, accidents do happen, and regardless of the size or longevity of your business, your employees should have some safety in place.
A growing number of businesses are now only digital. They operate through websites and do not have physical locations. If your startup has a digital presence, then you may want to consider cyber insurance. This coverage helps protect your business in the event of a data breach, or other cyber attack. When you house sensitive information on the computer or online, you are susceptible to a cyber attack. Cyber insurance may help cover costs associated with loss of personal or sensitive information and the legal costs. It’s not a bad idea to get this type of insurance when your startup is still young.
No matter what type of startup you have, it’s important to insure it. Most of the time, the cost of insurance won’t be too high since startups are typically smaller scale. Having insurance can also help keep your business afloat while you navigate the waters of owning a business. Though insurance for businesses may sound daunting, you can always call up an insurance agent and they can help you figure out how to best protect your startup! They can answer any questions you may have as well as address any concerns that arise. Do what you can to help ensure the success of your startup! Insurance is just another way to do that!