Launching a startup is a dream come true for many entrepreneurs, giving them a chance to introduce an innovative product that could revolutionize the market. However, the path to success is strewn with risks, many of which could put you out of business before you even get off the ground. Here are a few reasons to protect your investments with a business insurance policy.

4 Reasons Startups Need Business Insurance

1. Protection Against Liability

Startups are vulnerable to liability lawsuits, even if you haven’t launched your product yet. For instance, an employee could fall down the stairs, or a customer might be injured by a defective product. Liability coverage will pay the cost of valid claims, protecting you from judgments you may not be able to afford.

2. Business Property Protection

Many startups begin at home, but you can’t rely on your homeowners insurance policy to protect your computers, equipment, inventory, or prototypes in a disaster. Most homeowner’s insurance policies specifically exclude business property, so you’ll need separate coverage to shield your new company’s assets.

3. Data Hacks Are on the Rise

Data thieves increasingly target small businesses, especially small companies without the resources to defend themselves. Whether you’re launching a new app or opening a web store, you could be held liable for losses if your security measures aren’t up-to-date. Cyber liability insurance shields you from these lawsuits and provides the funds you’ll need to recover.

4. Covering for Honest Mistakes

Depending on the field you’re going into, your startup could be held responsible if a mistake or omission on your part causes a client to lose money. If your startup involves marketing, consulting, or security work, your business insurance policy should include errors and omissions coverage to shield you from these lawsuits.

Opening your own business is a daunting project, but the experienced agents at Integrity Insurance Solutions are here to help your new startup succeed. Their staff of seasoned professionals serves entrepreneurs throughout San Marcos, TX, offering one-on-one assistance choosing a business insurance policy tailored to your needs. Visit their website for more on their services and products, follow their Twitter for more insurance advice, or call (512) 396-2211 to arrange a meeting and request a quote.