In a word…yes.
As an entrepreneur, you are used to taking risks. If you weren’t, you wouldn’t be in business in the first place, right? But once you’ve opened your doors (or your website) for business, it’s a good idea to consider how to minimize the risks associated with operating a company. Small business and startup insurance is a surefire way to minimize your risks, many of which you may not even realize exist until something happens. The Small Business Association recommends that startups have the right coverage to protect against various situations where you’d be liable.
Protection against general liability
Like it or not, accidents and unexpected events can happen at your company. And without the proper insurance, you could be liable. Things like injuries, property damage and medical expenses could mean unforeseen expenses to you as the business owner. To ensure that you’re covered, a General Liability Policy is a smart choice. If you’re in a business that offers a service and not necessarily a product or line of products, this type of policy will be the most beneficial to you.
Protection against product liability
If you’re offering a specific product or line of products, your risks become a little different than if you’re just providing a service. Think about what would happen if one of your products was defective and someone who purchased it got injured. Of course, this type of insurance may not be necessary if you’re producing a product that couldn’t do any harm. But the general thought is that if you’re manufacturing and distributing products, you should consider a Product Liability Policy.
Protection for your company’s property
Wherever you’re operating your company, it’s also a smart idea to consider purchasing some sort of property insurance. A commercial property policy will protect you when unforeseen events cause damage to the property and/or what’s housed inside your building, like your product inventory. So if there’s a fire or a hail storm or some other event, your physical assets will be covered. There are various policy types for this type of coverage including all-risk, peril-specific and business interruption policies.
While this is a topic of hot debate in recent years, most companies offer some sort of insurance as benefits to their employees. Even if your company consists of just you and a handful of others, you may want to consider providing a health insurance policy. It not only gives you and your employees important coverage and shows that you care about your staff, but it can also provide tax savings to you as the business owner.
As the owner of a startup, it’s important to keep in mind the risks you take when not getting insurance for your company. That being said, it’s best to consider what types of policies are out there and which ones you’ll need most. To learn more or for help choosing the best policy for your startup, contact Avante Insurance today.