3 Types of Business Insurance Every Startup Needs
You’ve spent the time, energy, and money on setting up your startup. The last thing you ever want to happen is for your startup to fail. Here are three types of business insurance that every startup needs, regardless of your industry, along with the information you need to help make this important decision.
Depending on your startup, the property costs can make up a large portion of your business expenses. This can include the building, computers and other equipment, cash, and other purchases tied to your startup. Commercial property insurance is designed to cover your property in cases such as fires, vandalism, extreme weather, and accidents at work. Make sure to shop around and compare insurance providers, because the details of what plans cover can vary greatly from one to the next.
When you offer services to your customers, there’s always a chance that a customer can file a lawsuit against your startup. Professional liability insurance can sometimes be called Errors and Omissions coverage (E&O). This type of insurance is designed to help protect your business in situations where you or your employees make a mistake that costs your customers money.
Even in situations where you win a lawsuit, the costs of fighting your case in both time and money can take away from the success of your startup. In these situations, professional liability insurance can help you settle cases quickly without using up valuable startup funds.
General liability insurance is considered the foundation of any company’s insurance package. This type of insurance covers a wide range of claim types, such as property damage, personal injury, workplace accidents, and other incidents that can occur at your startup. General liability coverage costs can seem like an unnecessary or added cost at first glance, but legal costs, settlements, and judgments can add up to even higher costs that can bankrupt your startup if you don’t have proper coverage.
Having the right insurance for your startup can help make sure that it is protected in the long run, no matter what comes. Each startup is different, and you should find the right set of coverage that matches your own unique needs. Providing accurate information on your startup can help an insurance company better understand and identify the risks associated with your startup and offer the right level of protection.
A good start is a general liability insurance policy whether or not it’s a requirement for your industry. That way you can protect your startup, yourself, and your employees from the unexpected.
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