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An insurance policy can be invaluable for a new startup. Startup businesses run many risks at the beginning. Insurance can provide a startup with protection as it moves into the market. Whether you are starting a company in the flower market or a high tech industry, your startup needs protection. An entrepreneur founding a startup should seriously consider which forms of business insurance fit the startups needs. Your startup will need both conventional business insurance, and insurance specialized for a startup. Here are the types of essential insurance for startups.
General Liability Insurance
The most important insurance for your startup or any business to have is general liability insurance. This policy protects your startup against damage and injury that occurs on your premises. This means you are protected if an investor or a customer is hurt in your office and sues. It also protects you if one of your employees’ damages someone’s property. This sort of insurance is easy to get and inexpensive. General liability insurance can save you from many damage lawsuits.
Property Insurance
Property insurance protects the most valuable assets of your startup. The insurance not only protects your physical establishment, but also your essential equipment from damage so you can sidestep the unexpected. This sort of insurance can also reimburse you for lost time and labor if these assets are damaged and rendered un-useable. As a startup, you cannot afford to lose your most expensive equipment, even for a day. Property insurance will ensure that accident or natural disaster cannot cripple your business.
Worker’s Compensation
If you have any employees who are not relatives, you must get worker’s compensation insurance for startups. In most states you will, in fact, be required to. This insurance will compensate your employees if they are injured in the course of their duties. This has the benefit that fosters trust between you and your employees. They know that if something goes wrong, they will be taken care of without having to fight for compensation. This will not only protect you but foster a good working relationship.
Director’s And Officer’s Insurance
Director’s and officer’s insurance will help your protect your investors. This insurance protects the company against securities lawsuits by shareholders and stock investors. It also protects your board members private assets if they are accused of damaging the company through bad decisions. Most investors and financial experts won’t join your company unless you have this protection. Without this insurance, their investments will be at risk to predatory investors.
Cyber Or Media Insurance
Cyber-attack and loss of intellectual property due to a hack or malware attack is more and more a concern for all businesses. As a startup, your company is particularly vulnerable. You cannot afford the heavy cyber defenses that major companies can. Cyber insurance can help compensate you if your data is lost or your equipment crippled in a cyber-attack. Many of these policies also carry a useful media clause. This provides you with funds to deal with the PR situation after a cyber-attack. This ensures you are defended from the panic or lose of trust that such an attack can instigate. This sort of policy is state of the art protection for the most recent concerns.
As a startup, your company can be saved by many types of insurance. General liability insurance is essential to protect you if someone gets hurt on your property. You can protect your property and assets with property insurance. Workman’s compensation is required to protect your staff. Director’s and officer’s insurance protects you and your partners from distrusting shareholders. Cyber insurance protects you from data breach, and the media fallout. With these insurance for startups, you can press forward knowing that it is safe.
