Fledgling businesses are very vulnerable to risk and so business insurance for startups is essential for their success and growth.
Business insurance for startups can be critical to a startup’s success. It allows entrepreneurship and innovation to thrive without the risk of closing down before you have really begun.
Why do I need startup insurance?
Many types of insurance are needed by law and some are there to give you the confidence to create the business that you have dreamed of without fear of financial collapse due to paying out legal costs or replacing equipment damaged by a fire or flood.
A business startup insurance package should include:
1. Professional indemnity insurance
Professional indemnity insurance provides cover if a client sues you. Not only do you need it to protect your business, but many professional bodies, institutions and clients will require you to have it before they work with you.
2. Employer’s liability insurance
You must have employer’s liability insurance by law if your startup business employs staff, even on a temporary or part time basis. If an employee is injured at work or becomes ill through work they are doing for you, then you will need employers’ liability cover in case they seek compensation.
3. Public liability insurance
Anyone can claim against your startup business for an injury they have acquired or any damage done to their property which has happened when working with you. Someone can sue you for an injury caused by simply tripping up on your laptop bag if it is in the way, so public liability insurance is definitely worth adding to your insurance package.
4. Product liability insurance
If you design, make, sell or install products you will need product liability insurance included within your business insurance for startups. If your product causes injury or damage to property, then you will need product liability insurance so that your business doesn’t go bankrupt by having to pay thousands of pounds of compensation and legal fees.
5. Office insurance
Startups are often small in size and operate from modest surroundings, but they are not free from risk. Your business equipment could be stolen, lost or irreparably damaged. Not only will you have to foot the bill for replacing everything, but also you might be unable to work until the replacements arrived and this would cost your business dearly. Office insurance provides the safety net needed for peace of mind, freeing your attention to be focused on other crucial matters.
6. Building insurance
Building insurance will cover your home office or office building structure, indoor fixtures and fittings in case of damage.