Your business is at its most vulnerable when you’re just starting out, and you don’t have a long history or well-known reputation to rely on. Similarly, suppose you only have a limited number of resources, or you haven’t gotten around to registering as a limited liability company yet; you could be putting your own assets at risk too.
Fortunately, business insurance can give your startup the safety net it needs. To find out what types of insurance could be right for your venture, take a look at these five types of insurance that could save your startup:
1. Workers’ Comp Insurance
If an employee gets hurt while working or develops an occupational illness, they’ll want to claim financial compensation. As well as protecting the business’s liability, you’ll be meeting your legal obligations if you’re based in a state where workers’ comp insurance is mandatory.
Taking out workers compensation insurance won’t put a dent in your budget, providing you choose to get cover from a cost-effective provider like The Hartford. Having helped more than one million small businesses like yours, their policies provide the cover and peace of mind you need when you’re launching your own business.
2. General Liability Insurance
As well as protecting your staff from accidents and injuries, you’ll need to make sure that any members of the public are well-protected too. If someone is injured on your premises or hurt as a result of your business activities, they could decide to file a lawsuit against you. General liability insurance means that your insurer will cover compensation payouts rather than coming out of business funds or from your own assets.
3. Commercial Property Insurance
Your business premises are the hub of your commercial activities, which means that any property damage that occurs could have a significant impact on your operations and your finances. Depending on your policy, commercial property insurance can cover your business equipment, as well as your premises. However, do check exactly what type of damage can be claimed for. Some policies won’t include storm-related damage, for example, so extra cover might be needed.
4. Business Interruption Insurance
If you can’t run your business due to unforeseen circumstances, your turnover and revenue could take a hit. As a result, you might find it hard to keep up with loan repayments or lack the funds to pay your staff. Many startups and small businesses have low financial reserves and rely heavily on their cash flow, which is why business interruption insurance is so important.
5. Product Liability Insurance
If you manufacture or sell goods, product liability insurance will provide protection if anyone tries to claim that your products have caused them harm. From craft products to production lines, this type of business insurance can prevent you from funding a costly payout if someone takes legal action against you.
Getting the Right Advice
Having the appropriate range of business insurance in place is critically important, no matter what size your business is. By seeking advice from a professional insurance adviser or doing your own in-depth research, you can find the best policies for your startup and get the protection you need.