Starting your own business can be exciting. You have freedom to do things your way, the prospect of new customers, and all the possibilities laid out before you. Figuring out the insurance you need, however, is generally less exciting. Still, it’s necessary that your business is insured. With so much uncertainty, accidents and questions of liability are inevitable.
However, different businesses have different insurance needs. Here are some of the common insurance plans that businesses need. Which ones apply to your startup?
General Liability Insurance
General liability insurance is a necessity no matter what your insurance might be. Any startup can get caught up in legal action, and if the court awards the other party or you agree on a settlement, the only way to keep your business afloat is with liability insurance. Liability insurance will protect your business and your earnings, current or future, in the event that claims of injury, property damage, or even slander or libel, are filed against you. It may even be worth your time to invest in umbrella liability insurance to cover what your general liability insurance doesn’t.
Commercial Property Insurance
This kind of insurance is mostly important if your business includes a physical office or storefront. Twenty years ago, that would have been all startups, but the world is changing. Now many people start remote businesses and sell their products or services online. However, property insurance can still protect your equipment. If you sell crafts from an online store, property insurance will cover damage to your materials. If you run a digital marketing business, property insurance can protect your computer or laptop.
This should go hand-in-hand with property insurance. Property insurance usually doesn’t cover floods, so you’ll need flood insurance to make sure you’re fully protected. Again, this is something that’s primarily important if you have an office or storefront. Although less likely, there are instances in which flood damage could damage your remote business, as in instances in which your equipment or internet router is damaged in the flood.
Some startups are businesses of one. The sole proprietor is also the sole employee. This is often the case with freelancers or internet shop owners. However, as business expands, you may decide that you need to hire an employee to help you accomplish everything. In that case, you’ll have to sign up for workers’ compensation. If the employee is injured on the job, workers’ compensation covers medical, disability, or death. Without workers’ compensation, even an injury as simple as carpal tunnel could be a severe cost for your business.
Professional liability covers legal claims in which the client was injured during the course of a job. This insurance isn’t necessary for remote workers, but for health professionals, home improvement professionals, or transportation professionals, it’s a must. Professional liability covers legal defense fees, judgments or settlements, or reimbursement of lost revenue.
Cyber Liability Insurance
On the other hand, cyber liability insurance is essential for remote workers. With remote startups, all of your information is online. In the instance of a hacker or power surge, you could lose vital data for your business. While you scramble to rebuild your database, cyber liability insurance will cover you. It also protects employee privacy liability, network security, and covers cyber terrorism.
With 30 years of experience, Remco Agency are experts qualified to answer any questions you might have about coverage for your startup, and set you up with a plan. Contact us today for more information.