5 Different Types Of Small Business Insurance For Startups

There are several different types of small business insurance for startups. For today’s companies and small business startups, commercial insurance is critical to survive as a successful organization. After all, many common types of company insurance are often required by federal, state, or local laws. As an entrepreneur, you’ll want to know about the unique kinds of insurance policies to protect your employees, workplace and corporate investments. Of course, even if you start a veterinarian clinic, you should have some type of pet business insurance. Read on to learn about the different types of small business insurance for startups.

Disability Insurance

First off, every startup company needs disability insurance business policies. Disability protection offers employees a portion of their salary if they are unable to work following a major injury or incident. Unlike worker’s compensation, disability insurance provides financial aid even for non-work-related incidents. While disability insurance is not a requirement in every state, it is well worth the investment. Of course, these policies provide you with peace of mind knowing your employees are financially protected. For sure, disability protection is an excellent type of small business insurance for startups.

Property Insurance

Next, property insurance is another great type of protection policy for your startup business. Property insurance offers coverage for valuable business owned equipment, product inventories, and furniture. For example, if you own a farm, you’ll need farmers insurance to protect your plows, tools and team. It also provides coverage in the event of property damages related to natural disasters or an unexpected fires. Some specialized policies also offer aid for other types of disasters like floods or earthquakes. If your local area is prone to natural disasters, you may want to speak with your insurance provider to negotiate additional coverage options. Definitely, property protection is a common type of business insurance for startup companies.

Cyber Liability Insurance

Startup businesses with an online presence should also know about types of cyber liability insurance. This is especially true for companies that store credit cards data, social security numbers, or confidential invoices. In short, cyber liability policies add an additional layer of protection in the event of security data breaches or network outages. Also, these policies can extend to cyber theft, phishing emails, and other hacking attempts. To broaden your coverage, you can always obtain a tech E & O policy as well. Surely, cyber liability insurance is a recommended policy for tech-focused startup companies.

Product Liability Insurance

Also, product liability protection is a popular type of insurance policy for startups. This form of coverage is primarily for startup businesses that manufacture, deliver and sell inventory. These polices protect against financial losses related to product defects. This can be beneficial if you are manufacturing or selling potentially dangerous products. With this coverage, you’ll be fully protected if you sell a product that causes a fire, injury, or accident. Certainly, the different types of product liability insurance offer significant coverage for startups.

Commercial Auto Insurance

Another critical form of startup business insurance helps to protect your commercial vehicles. Any companies that own trucks, cars, or vans must have a vehicle insurance policy. Certainly, if you own semi trucks, you must have semi truck insurance. Otherwise, you’ll be financially accountable for any mechanical issues, damages, or accidents on company cars. This means you could end up paying expensive charges and repair bills all by yourself. If you need this type of coverage, keep in mind that commercial auto insurance policies cost about $150 monthly. In exchange, you’ll receive coverage across your entire business fleet. Of course, think about the different types of commercial auto insurance to protect your startup financially.

There are several different types of small business insurance for startups. First, disability insurance offers compensation for out-of-work, injured employees. Also, property insurance overs your business if you experience damage from natural disasters. In addition, cyber liability insurance protects your company from online security threats. Next, product liability insurance provides financial aid for defected product that cause injury. Of course, commercial auto insurance will protect your organization from business-related vehicle accidents, damages, or break-downs. Read the steps highlighted above to learn about the different types of small business insurance for startups.