Small Business Insurance for Startups

Startup businesses often operate on budgets that make shoestrings seem robust. While you may be living on the equivalent of a Ramen noodle diet when it comes to business luxuries, the one thing you can’t afford to skip as you work to build your business, is business insurance. The following coverage types should be near the top of your list.

Business Owners Policy for Startups

What’s so great about this policy? While not all businesses have identical needs when it comes to insurance, the business owner’s policy addresses some of the most common coverage needs all businesses share at a substantially discounted price over purchasing these policies separately. A good business owner’s policy includes:

General Liability Insurance

Business Property Insurance (this includes coverage for inventory, equipment, buildings, landscaping, and signage)

Business Interruptions Insurance

You need business insurance of some sort even if you’re building your startup in your basement or garage, and this particular policy is an excellent beginning.

Cyber Liability Coverage for Startups

With so many of today’s startups either in the technology field or relying heavily on technology to conduct various aspects of business, it’s vitally important to include data breach coverage or cyber liability insurance among your insurance investments.

The reality is that hackers today are going after all targets, large and small, and smaller businesses and startups are often extremely vulnerable. While you want to take steps to avoid being hacked, the next logical step is to have cyber liability insurance in case you are.

Professional Liability Coverage for Startups

Also referred to errors and omissions insurance coverage, small businesses that provide services or dispense advice can’t afford this vitally important liability coverage. It protects your business and staff in much the same way that medical malpractice insurance protects doctors from claims of negligence or misconduct against them. This includes everyone from hair stylists to accountants and attorneys.

Workers’ Compensation Coverage for Startups

Any business that has employees in today’s business climate needs the protection workers’ compensation insurance offers the business. Whether you meet the level of state law requirements (and most businesses do provided you have some employees), it’s a wise investment to make for the health and wellbeing of your staff and the peace of mind that comes with knowing you’re doing the right thing by your employees if they become injured on the job.

Umbrella Liability Coverage for Startups

The bottom line is that you never know what’s going to happen. Even if you do everything right, claims can be made against your business and court trials are often crap shoots for all parties. Umbrella liability coverage kicks in once your existing liability coverage is depleted.

There are many other types of insurance coverage available to small business startups today. That’s why it’s so important to sit down with a qualified and reputable independent insurance agent to discuss your insurance needs along with your budget so you can work together to come up with the right protection for your business assets.