14 Nov Should Your Startup Company Have Business Insurance?
Starting a business can be an exciting and new challenge that helps bring your vision to life. As a business owner, finding the right insurance that fits your specific needs can be a challenge. New businesses have different needs than those that are already established, and require an insurance plan that will protect your startup against any risks. Many types of business insurances are required by law, while others are recommended based on your specific type of industry. Ultimately, having the right insurance plan for your startup business is necessary to protect your employees and ensure business continuity.
Why Does Your Startup Need Business Insurance?
For protection: Enrolling in business insurance plans for startups can protect your growing business against such costly scenarios as property damage/destruction, lawsuits and other financial threats.
To attract investors: Recognizing the necessity of risk management can attract potential investors. Business owners who think ahead by purchasing business insurance show a level of foresight that reassures investors about the legitimacy of their startup.
It is required by law: When you employ any staff – including contractors, temporary, or part-time employees – you are required by law to have employer’s liability coverage.
What Types Of Business Insurances Does Your Startup Need?
General Liability Insurance: This is the most basic type of insurance that can protect your startup by covering legal fees resulting from accidents, negligence and injuries. Any startup or small business should have general liability coverage to safeguard itself.
- Property damage: Provides coverage for your business if you or any of your employees damage someone else’s property.
- Bodily injury: Covers any medical expenses if you or one of your employees are injured while working
Property Insurance: Usually, property insurance should cover properties such as buildings, furniture, equipment and inventory. Sometimes it could protect virtual records, as well. This policy covers losses in the event of disasters such as fire, theft, earthquakes or hurricanes.
Workers’ Compensation Insurance: This covers injuries to employees while on the job, whether onsite or elsewhere. This policy also covers lost wages and medical treatments in case of a work-related injury or illness. Workers’ compensation insurance is very important, as it protects your startup from employee lawsuits. Florida law requires all employers to purchase workers’ compensation coverage.
Home-based Business Insurance: If your startup business is home-based, you need to be aware that your homeowner’s insurance policy does not cover home-based businesses in the way commercial property insurance does. In this situation, it is best to ask your insurer for additional insurance coverage that will protect your equipment and inventory in case of an accident or mishap.
Business Interruption Coverage: This policy protects your business in the event of a catastrophe by compensating your business for its lost income. Business interruption coverage can help your startup avoid major financial losses and ensure business continuity.
Business owners need to understand the risks that their startup companies face in order to come up with an effective business plan and purchase the appropriate insurance coverage. Fortunately, businesses have access to a variety of insurance policies that protect them against any threats or accidents.
Strassman Insurance Group can give you the benefit of years of experience covering the needs of small-to-medium size businesses. If you’re a startup business owner, schedule a free consultation with us today and tell us about your current insurance needs and plans for growth. Protect your vision and guarantee your future!