No matter which industry you are in, even an early-stage start-up is exposed to risks. Start-ups need protection from lawsuits since even one lawsuit can take the start-up out of business. The minimum a start-up needs is professional liability and property insurance.
Professional liability insurance helps protect the business against negligence claims, as a result of mistakes or failure to perform. This will be customized according to your business, so make sure you check the policy to see what is covered and what isn’t. Property insurance will cover your workspace or leases, things like company equipment, inventory, furniture, vehicles, etc. If any theft, fire or natural disaster takes place, you will be covered.
Enrolling in business insurance for startups can help protect your company against a myriad of costly scenarios, from litigation fees to property destruction. Find the right liability coverage for the present and future of your startup with a clear-cut comparison from CoverHound.
Covering Liability General liability insurance is important for businesses even in their earliest stages and covers legal fees resulting from accidents, negligence, and injuries. One unfortunate accident in your office and you could be facing an injury lawsuit. Commercial spaces often require a certain amount of this coverage before you sign the lease. Your organization will need liability coverage that grows along with it.
Protecting Property One of the biggest expenses for startups is the equipment they need to operate. If you have a physical property that could experience damage, you’ll want to insure it under your business plan. It’s a wise idea to protect your equipment against scenarios like this with commercial property coverage and to note that many policies cover lost income resulting from interruptions in business due to damage.
Insuring Products and Services Offering a product or service to the world does not guarantee that it will work perfectly 100% of the time even after extensive product trials. Your liability coverage is important in protecting you from damages potentially caused by your offerings.
Protecting Employees As your startup grows, so will your to-do list. At some point, you’ll need to bring on employees to handle various departmental tasks. Workers compensation is crucial for protecting your team and your overall organization. Whether an employee suffers an injury on the job or needs medical attention for a long-term problem like carpal tunnel syndrome, workers' compensation coverage will address these claims.
Errors & Omissions Professional liability insurance, commonly called errors and omission (E&O) coverage covers “intellectual property, privacy, and Internet services negligence which causes financial or other no-tangible loss to a third party,” Startups that engage in fields like consulting or advertising will want to pay special attention to their professional liability plan to make sure it’s up to scratch.
As the leader of a startup, it’s up to you to protect your growing business from the beginning through all the subsequent stages of expansion.