Starting and maintaining a business is a ton of work. Your budget is probably tight yet imagine what would happen if an unexpected event occurred and you were uninsured. Today, we are covering some of the insurances all founders need to have for their startups to ensure that they are prepared for the unexpected. By investing early in insurance you can make sure that your business is around for the long haul.
Liability is one of the first types of insurance your business will need. This type of insurance will provide you with legal and financial assistance when the need arises. It covers when employees or products are accused of causing bodily harm or property damage. Something simple could cause you a huge headache and a ton of money without this type of insurance.
The amount of money you will have to pay for this insurance varies based on your business. For example, if you serve alcoholic drinks in your establishment you will have to pay higher rates. Some may find liability insurance to be expensive, but when it is needed, it saves you a ton of money.
It is also suggested that you go with professional liability insurance if you provide professional services. Sometimes this insurance is referred to as Errors and Omissions insurance.
Your property that your business is located on is a very important asset to have insured. With property insurance, you can be covered for damage to your property such as fire, vandalism, and theft. It is also wise to add on business interruption insurance, so you will be covered in the event that the damage to your property causes you to be unable to operate your business for an extended period.
Laws in many places require workers compensation. It serves the purpose of providing employees with medical benefits and wage replacement in the event that they are injured while working and are unable to work for a period. It helps you out too, because in exchange for Workers Compensation being provided employees are unable to take any legal action against your business.
Your business may be around for centuries, however, it does not mean those who run it will be. Life insurance will help keep your family protected financially upon your death in addition to helping protect business partners. When you do life insurance for business, it works the same way as a traditional life insurance policy, meaning you pay a premium each month and when your death occurs, a death benefit goes to the beneficiary.
Commercial Auto Insurance
Commercial Auto Insurance is what protects your company vehicles. This is important for businesses to have because if an accident occurs you want to make sure that your company vehicles are insured. Additionally, if your employees use their personal vehicles for business purposes you have to have non-owned auto liability to make sure that you are covered if they have no insurance or not the adequate amount of coverage.
Life Insurance on Founders
The founders of a startup is usually the driving force behind the company. In many cases the business will suffer if not completely collapse if something happens to the founder. A smart startup company will have a significant life insurance policy on its founders and key employees. At the very protect the key individuals in your organization.
The insurance types that we have covered today can save you a ton of money if something goes wrong. As a startup you have to cover everything out of pocket and one bad thing happening could not only put you in debt but it could be big enough to put your just beginning company out of business. Therefore, despite the cost that comes with the different types of insurance it is important to have to them to be safe. Try and avoid the most common mistakes startups make when it comes to insurance. Unexpected things always seem to occur at the wrong times and the last thing you want to do is have something occur when you are not covered.