Insurance can help protect your startup in many situations where damage or liability may arise.
Yet, there are many startups that don’t have insurance, and this makes them vulnerable. If you are looking to learn about the different types of startup insurance you have come to the right place.
What Startup Insurance do I Need?
In this article, we will share the common types of insurance that startups need. Here are the types of insurance you need for your startup.
Workers Compensation Insurance
One of the most important types of startup insurance is workers’ compensation insurance. This insurance helps make sure your employees are taken care of if they were to sustain injuries while on the job.
The great thing about worker’s compensation insurance is it helps to cover medical treatment for your employees. It also covers lost wages while they are out of work due to injury.
Join Our Small Business Community
Get the latest news, resources and tips to help you and your small business succeed.
This is a must-have type of small business insurance because it can also help take care of employees if they have a work-related illness.
For example, if you own small construction business and an employee gets black lung disease, this is a work-related illness. Worker’s compensation insurance would protect you from your employee filing a lawsuit against you.
General Liability Insurance
Another type of start-up insurance is general liability insurance. General liability insurance is a basic form of small business insurance.
It can help you protect your startup in a few different ways. If there is a small accident or any other liability issues that may arise, general liability insurance will act as a safeguard.
It can help provide protection for bodily injuries, property damage, or cover the actions of your employees. While it is understandable to want to keep business costs under wraps, this insurance is necessary.
For example, if you or one of your employees damaged a customer’s property, your general liability insurance will help you to pay to fix the damages.
Another example of how general liability works is if you or your employee were to injure someone accidentally while working.
Product liability insurance
An extra type of startup insurance that can be beneficial is product liability insurance.
As a startup, as you sell products to your customers there is a risk that your products could be used in an unintended way. If that happens a customer could come after you and your business in a lawsuit.
Product liability insurance will help protect you in the event your products cause damage or don’t work as intended. You are able to customize this type of insurance to fit your needs.
To keep your startup insurance costs low, you can start with a smaller amount of protection and then increase that amount as your startup grows.
Other Possible Startup Insurance
There are a few other options for startup insurance that could be useful.
You can buy error and omission insurance which protects you from a lawsuit for mistakes that your startup may make. It can help you cover court costs or judgments filed against your startup.
There is also business income insurance, which is referred to as business interruption insurance. This insurance can replace your income if you experience a covered loss like a fire or theft.
If you are looking to find more possible startup insurance, click here.
Protect Your Business at All Cost!
Startup insurance is necessary to protect your business. As a startup, you will have business costs that can help or hurt your business, but insurance isn’t one of them. Protect the very thing you have worked so hard to get off the ground by having the right insurance.
If you found this content helpful feel free to check out our website for more useful articles.
Some other articles you might find of interest:
Would you like to better understand how to drive and increase traffic to your startup website?
Do you have what it takes to start and run an online business?