Do You Need Insurance for Your Startup Company?

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Don’t leave your Startup Unprotected

If you are developing a startup company, one of the things that you certainly need to consider is the amount and type of insurance you will need. Even though having insurance might seem unnecessary in the early days of your startup company, you will quickly find that it is essential if you want to stay in business. There is always an element of risk associated with starting a business. Having insurance helps to mitigate many of those risks. It also provides some added security. One of the issues that many companies have is that they do not know what type of insurance they need to buy.

Types of Insurance for Startups

The SBA, or Small Business Association, feels that a business should examine a number of different types of insurance when they are trying to determine which one is right for their needs. Some of the most common insurance options include:

• General Liability Insurance
• Product Liability Insurance
• Professional Liability Insurance
• Commercial Property Insurance

It is important to remember that each of these options is very different and is useful for a different type of business.

General liability insurance is a great choice for most businesses, and can help the company to stay safe from issues such as property damage, payments for injuries and medical expenses, settlement bonds and other judgments. It can help protect a company in a wide range of different ways. For those companies that provide general services, rather than specific products, this may be the only type of insurance you need.

Product liability insurance is an ideal solution for those who are selling products that they create. This type of insurance will help to keep the company safe from any injuries that might occur because of product defects. Those who are in manufacturing, distribution, and retail may want to consider getting this type of insurance in addition to general liability insurance.

Professional liability insurance is a type of insurance coverage for professionals, such as doctors. The insurance protects against things such as negligence and malpractice. This type of insurance is a requirement in many areas because of the amount of risk that surrounds the people who offer these services.

Commercial property insurance is another important consideration. The property where your business operates can pose just as much risk as your business activities do. Whether there is a fire or some other type of disaster, having commercial property insurance can help make sure your startup doesn’t lose all of the goods and equipment that you own.

Which Insurance Is Right for You?

One of the biggest problems is in knowing which type of insurance you need to have. Honestly, you have to look at the type of business you have, what risks you are carrying, and what makes the most sense. If you are offering handmade sweaters or app games, then you probably do not need to have professional liability insurance. In some cases, you will want to look for types of insurance that are specific to your interests and field. Some fields may have organizations that will provide group policies, which can help you to save some money on the cost of insurance. If you are freelancing, chances are good that you will want to have general liability insurance and perhaps professional liability insurance depending on your field.

If you have a startup company and you have been wondering just what it is that you should be looking for when it comes to insurance, you should get in touch today. We can help you learn more about the type of insurance that is right for you.