What Types of Insurance Does Your Startup Need?

When starting your own business, you may be so focused on all of the aspects involved with getting it off the ground, from the financing to the hiring of your staff, that you may forget about the importance of acquiring the right business insurance.

There are several different types of business insurance available, but what types do you absolutely need for your startup? Continue reading to learn more.

General Liability

General liability insurance can easily be considered the insurance that will cover you for everything from medical expenses and property damage, to lawsuits involving slander, libel, and injuries. In other words, this insurance is absolutely necessary if you want to be covered and protected in a variety of circumstances when your funds and assets could be put on the line. It is especially important to have this type of insurance if you provide a service to the public.

Professional Liability

If you are providing the public with a service, rather than a product, you need to protect yourself against negligence and malpractice, and the best way to do that is by purchasing professional liability business insurance. Physicians, for example, need to have professional liability insurance because there are many risks involved with providing the many medical services available. You can opt for Bizinsure liability Insurance, as it is a great place to start to get the coverage that you need to protect your assets.

Product Liability Insurance

If your business creates products and sells them to the public, rather than offering the public a service, you should get product liability insurance instead. This type of coverage will be necessary in order to protect your company from any product defects that could result in injuries. If your company is a part of the retailing, distribution, or manufacturing process of a product’s lifecycle, you should definitely look for the appropriate product liability insurance coverage. The amount of coverage you need will depend upon the type of products that your business deals with and the types of injuries that can occur from their use.

Commercial Property Insurance

Just as you have homeowners insurance to protect your house, you need to have commercial property insurance in order to protect your startup’s place of business from things like natural disasters and fires. In this way, your inventory may be lost, but you will be covered for those financial losses by the insurance provider. Just be aware that there are several different types of commercial property insurance policies to choose from. These include peril-specific options, business interruption insurance, and all-risk policy options. Look through each of them to determine which one would be most appropriate to your company.

When it comes to shopping for business insurance, you may need more than one type of policy, but if you shop smart, you can find a great provider with plenty of great options that will suit your budget. After all, as a startup, it’s very likely that you will not have a lot of funds, but you definitely don’t want to skimp on insurance.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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