10 Types of Business Insurance Every Startup Company Should Have
Are you the owner of a new startup? While it may be an exciting time, you should ensure there aren’t any gaps in your insurance coverage. Startup businesses have different needs than established companies, meaning they need additional policies. Phillip Kent Beck Agency provides quality insurance products to residents in High Point, NC. As such, their agents have outlined the 10 essential business insurances every startup should have.
10 Insurance Policies You Need for Your Startup Company
1. Employment Liability
With this coverage, a startup ensures any legal defense will be paid for by its insurer. This is necessary due to high litigation risks when it comes to hiring new employees.
2. Cyber & Media
This coverage is a must-have for new startups. In the event of an internet regulatory offense or the accidental release of customer data due to a system breach, a company’s legal defense is covered. You must show you took initiative to prevent such incidents from occurring for the claim to be covered.
3. Directors & Officers (D&O) Liability
Officers and directors on your new startup’s board will require this insurance. This policy will protect them against litigation enacted out of their business decisions.
4. Comprehensive General Liability (CGL)
With general liability, you are insured against third-party claims like bodily injuries, property damage, personal property, and advertising injuries. The legal defense will be paid for by your insurer.
5. Commercial Property
While this coverage appears to protect against property damage, it actually provides coverage for lost income, building interruption of the business day, your building, computers, and other technologies. It also insures documents and cash.
6. Workers’ Compensation
If any of your employees are injured while on the work site, driving a corporate vehicle, or performing work duties, your startup could be liable. For this reason, it’s essential you invest in workers’ comp.
7. Home-Based Business
Though you might be starting your business out of a garage, your homeowners insurance will not cover any incidents that happen during your work hours.
8. Life
While you might not be considering life and death while you’re setting up your business, you should invest in this insurance if you have dependents who rely on your income for their livelihood. If you pass unexpectedly, they will be covered for basic necessities, like housing, medical care, and education expenses.
9. Unemployment
If you’re forced to let employees go, you may have to pay unemployment insurance. Ensure your company’s financial interests are protected by investing in this policy.
10. Professional Liability
Also known as Errors & Omissions coverage, this insurance protects companies that offer services. If you’re sued, you will be protected against malpractice claims, errors, and negligence.
If you’ve just launched a new startup company, ensure you have adequate coverage. The best way to do this is by consulting a qualified agent who will assess your needs and find you the best insurance quote available. Phillip Kent Beck Agency’s qualified team is on hand to help. Call them today at (336) 434-2111, or visit their website for more information.