As if launching a startup wasn't already complicated and risky, as the business owner, you must consider your need for insurance. Choosing what to cover and what to take a chance on is overwhelming, but failure to protect your assets could easily result in you losing everything you've worked so hard for. Here's a quick breakdown of the specific insurance your new business may need:
1. Your Products
Unforeseen events, structural deficiencies, miscalculations and a host of other factors can result in product recalls, which could really harm your business - perhaps even bankrupt it, if you don't have the right insurance. For example, the FDA reports that over 10 million pounds of meat were recalled in 2015 due to undeclared allergens, a situation which should be avoidable with forethought and caution; however, mistakes happen and if they result in possible harm to anyone, the responsible business is liable. No matter how much you think your product is exempt from such scenarios, think again, and make sure you're covered.
2. The Services You Offer
Professional liability insurance protects your business if some kind of mistake is made with the services you offer. For example, if advice you give to a client turns out to be inaccurate and they suffer some type of loss or hardship as a result, your business can be held liable. While it's difficult to imagine yourself in such a scenario, especially if you're self-confident in your abilities, this type of insurance is highly recommended because anything can happen.
3. Your Employees
Employee insurance can cover everything from people being injured on the job to someone coming back after dismissal and filing a lawsuit against your business for a number of reasons, such as discrimination or wrongful termination. Depending on the number of employees you have, your insurance needs will vary, even according to the regulations set forth by the state the business operates in; thus, you're going to need to investigate the specifics that apply to you and determine your insurance needs.
4. The Business Property
Even if you operate a business from inside your home, if someone is injured there, you could be held responsible. Any retail business or other establishment where people come and go should definitely be protected by insurance; however, even if you operate the company on your own from a website, with no one setting foot on your property, any goods or products kept there could be damaged, meaning you'll still need some type of coverage. A general liability policy should suffice for such miscellaneous situations.
5. Vehicles Connected To The Business
While your vehicle likely has a comprehensive insurance policy already, the specifics won't always apply if an accident occurs during the course of a business transaction, delivery or other professional reason. Ask your insurer about combination or multiple policies for discount purposes, but your business will need coverage for any vehicle(s) involved.
Hacking has become a major threat to many entities, and if your business stores personal data, consider insuring yourself. It may also be helpful to consult with cyber security experts who can ensure your systems are as safe as possible.
Business insurance is a complicated matter, but needing it for a startup may be even more confusing. Find a good agent who will explain everything in detail and ask them about different payment and package scenarios, so you can customize this important necessity for your company the best way possible. Contact a company like Welsh Insurance Agency Inc. to learn more.