So, you’re starting a business. You’re in luck: The entrepreneurial world has never had so much opportunity. If you’re a fast-paced, intuitive worker, you’ll do great. You should, however, stay protected. Start-ups can be affordable, but insurance matters.
Think about your insurance like any other company asset. If you’re growing your start-up, check out these five startup business insurance items.
Item One: Comprehensive General Liability Insurance
Also called CGL insurance, comprehensive general liability insurance will protect most of your assets. This policy should serve as your foundation. It’ll protect you from property damage, bodily injury and other harm you cause others. In many cases, it will even cover advertising injury to others.
Item Two: Cyber Insurance
We live in a digital age. Hackers exist, draining the business world of money, intellectual property and consumer information. You won’t find a standard cyber insurance plan, but this isn’t a bad thing. A cyber insurance policy protects your business’s needs on a custom-tailored basis. Should a cyber crisis threaten the business, your policy might come in handy.
Some plans even offer crisis management support, regulatory notice options and incident prevention. Many insurance experts urge start-up owners to buy first party cyber insurance plans. These plans often offer:
- Business interruption coverage
- Customer breach notification
- Public relations support
In short: a first party plan protects your credibility. It also informs your customers of digital attacks. It can prove extremely valuable in case of violations of a client's privacy.
Item Three: Directors and Officers Liability Insurance
Also called D&O coverage, directors and officers liability insurance covers business leaders. It defends them from litigation targeting their decisions. It even protects directors, managers and officers from certain acts that might’ve damaged your company’s value.
Item Four: Employment Liability Insurance
Next, you should buy an employment liability insurance plan. Employment liability is different from workers' compensation. Purchasable alongside a worker’s comp plan or even D&O coverage. Employment liability protection will defend you from hiring or retention claims. These might include things such as harassment or discrimination.
Item Five: Product Liability Insurance
As a startup owner, you’ll make mistakes. It’s okay. You should, however, make sure these mistakes don’t cost you. If you’re manufacturing products, you must have product liability insurance. This insurance protects you if your product malfunctions, breaks or even injures someone. It’s a core element of most business insurance plans, and it can serve you, too.
With the right insurance, you’ll protect your startup from big financial losses. Whether you’re facing catastrophic weather, a lawsuit or even a defective product, a solid business insurance plan can save the day.