Business is highly risky and unpredictable if you’re a startup business owner. Anything could change at any moment, and there’s a whole host of risks your company may be exposed to. Because a lawsuit could mean the end of your business, make it a priority to get the right insurance package from the start.
While startups are often hyper-focused on their operations and growth, a significant number overlook or opt to go without insurance, leaving their business at risk. Don’t let a simple oversight in insurance coverage spell disaster for your business. Here are some key points to keep in mind when deciding what kind of insurance your startup may need.
Know Your Risk
Before you choose an insurance policy, you need to understand what your risks are and how they might change over the years. Consider the following when deciding what insurance policy your startup might need:
- What the business could be held liable for—property damage, financial loss, physical injury.
- Who the business could be held liable to—employees, customers, or anyone visiting the store, warehouse, office, etc.
- When the business could be held liable—once the office space is purchased or leased, employees are hired, products launch, contracts are signed.
- Where the business could be liable—if the business has a website, it could also be liable under the European Union’s General Data Protection Regulation (GDPR) for data misuse or privacy violations.
- What could potentially close business operations—consider business interruption insurance for unexpectedly closing business for a period of time due to unforeseen circumstances.
Compare Your Insurance Options
When considering insurance for startups, every company needs to protect its investment, business activities, and employees. While the insurance your startup business needs may be required by law or company investors, general liability insurance is the most important in protecting you from libel, property damage, and bodily injury claims.
Workers’ compensation insurance covers any medical treatment, death, or disability claims should an employee get injured or die while on the job. Professional liability insurance will protect against any claims for negligent work, while auto insurance is needed for any company-owned vehicles. Health insurance is an important employee benefit that can help you recruit and retain employees.
Get Proper Coverage
Simply buying the cheapest insurance premium will not help you when the unexpected happens. At Swarts, Manning & Associates, we help our clients get the best coverage for their needs at the most reasonable price.
You also need to know what exactly is covered in your insurance. You don’t want to assume your insurance will cover something, and then once your business is hit with a claim, you find out your insurance won’t cover it. In addition to comparing quotes, look closely at what your insurance premiums will cover and will not cover before deciding.
Work with an Agent
Navigating insurance for startups can be tricky. That’s why you’ll want to work with an insurance agent who is experienced in providing insurance advice for businesses in your industry. Always work with an insurance provider with a solid reputation.
By keeping these tips in mind and consulting with an insurance agent, you will be able to determine the correct insurance and coverage for your business.
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