Top 5 Types Of Insurance Your Startup Needs
As a startup business, no matter what industry you’re going into, you’ll need to ensure that you have the right legal protection from the beginning of the process. Starting a business comes with so many different risks and you’ll want to make sure that you’re in the best position possible if any of these become a reality.
One of the key ways that you can protect yourself, your business, and its employees is through business insurance. But if you’re unsure as to which types you require, the prospect of them can seem very daunting. there is insurance for everything nowadays; insurance for buy-sell agreement, insurance for employment liability, and first-party property.
To give you a headstart, below are 5 types of insurance that every startup business needs. Of course, this isn’t a complete list, so it’s vital that you research the various types of insurance your specific business needs before taking the leap.
But to send you on the right path, take a look into the following:
Product Liability insurance
One of the essential types of insurance that every business needs is product liability insurance.
If you sell a physical product to the public, you need to have the peace of mind that not only it’s been tested to ensure that it’s safe, but that your business is protected in case of any lawsuits.
This is where product liability insurance comes in. Working to make sure that your business is safeguarded if a claim is made against it, you’ll be in a much better position financially afterwards. Without it, you’ll be responsible for a large bill at the end of the process.
First-Party Property Insurance
This type of insurance will provide coverage for any physical damage that occurred to company property. To take full advantage of this type of insurance, ‘all risk’ coverage is recommended as it will not only provide financial protection if any damage happens to your business premises, but also any equipment.
Without this insurance, you’ll find that not only do you have to cover the loss associated with the damage, but there will be significant downtime, resulting in a drop in productivity.
Professional Liability Insurance
Also frequently called Errors and Omissions (E&O) professional liability insurance will protect your business from any claims made regarding negligence due to a failure to perform or a mistake. Customized to your specific business and any issues it could face, it’s often at the top of new business owners’ lists.
Employment Liability Insurance
Employment liability insurance generally will provide coverage for your business in the case of an employee making a claim against you.
Usually, this is due to an illness that they suffered while working for you or for an injury that was caused by their work.
Although this is different to workers compensation and income protection, they can often be purchased together in a package. When looking at these similar types of insurance, it’s a good idea to compare and contrast different providers.
For example, if your business specializes in trade and you require income protection, compare income protection insurance quotes online before settling on the right one for you.
General Liability Insurance
Similarly to the above, general liability is the term used for a type of insurance that will cover your business if it faces any settlements or lawsuits. A component of business insurance, it normally covers personal property, third-party bodily injury, advertising injury, etc.
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