5 Essential Insurance Covers For Startups
Insurance companies are vilified for being in the media, and for good cause. They will take your money but refuse to pay up, once you have a claim. Better yet, you may end up having no claim despite paying the premiums for coverage. However, it is better to be safe rather than sorry.
Once your startup employs someone, the law will require you to take up some form of insurance policy. Injuries at the workplace and, from time to time, require a lawyer like Jeremy diamond, representing your clients. This won’t bode well for you if you don’t have any insurance coverage for your business. You will be forced to pay from your pocket. To prevent such scenarios.Here are the essential types of insurance coverage for startups:
General liability insurance
Whether home-based or industry-based, your startup needs this insurance. Why? Because it is not uncommon for businesses to receive claims their employees or products have caused injuries. This insurance policy will guarantee you protection from the ensuing lawsuit or claim.
Not only that, this policy will provide damages to the aggrieved party. It will guarantee your financial safety.
You are probably thinking this policy exists for heavy industries, right? If those are your thoughts, you’d better shun them. Injuries at the workplace could occur at any time regardless of heavy machinery. If an employee were to slip on a wet floor at work, this could be classified as a work injury.
What worker’s compensation insurance offers is the protection of the employer from future litigation. The employee will be offered wages for the period they won’t be at work. On top of which compensation is offered. In return, the employee will give up his right to sue the employer for the incident.
Professional liability insurance
As a professional, you will have multiple contracts and agreements for the provision of services. You will be required to provide goods and services per the stipulations in the agreement. What happens once a client feels the quality of services and goods you offered was unsatisfactory? They will probably sue your business for breach of contract.
However, you will be shocked to learn general liability insurance doesn’t cover this type of suits. What you will need is professional liability insurance. It will provide damages and defense against the improper provision of goods and services.
Like any normal business, you own property such as machinery, inventory, and buildings. It is important for you to ensure your property is protected at all times. A disaster such as fire, vandalism, theft can occur at any time, best be prepared. This is where property insurance comes in. It will cover your business’ losses in case unfortunate events occur against your property.
Commercial auto insurance
Does your business have any vehicles? If the answer’s yes, commercial auto insurance should be part of your insurance policy. It protects all the employees, equipment and products in the car once in transit. Furthermore, any injuries caused by the vehicle to any other persons will be covered by the policy. Failure to have this policy can be termed as a disaster waiting to happen.
There you have it if you want your business to be disaster-proof these are the policies to guarantee it.