Startup Business: What Type Of Insurance Do I Need?
Updated: Dec 6, 2021
One of the most common mistake that start-up entrepreneurs make is choosing not to buy insurance in the beginning. Failing to buy inadequate insurance coverage for the business could mean losing everything in a snap. However, not buying insurance when one is just starting their business is an easy error to make. When money is tight, and it seems as if there is a ton of more important concerns than insurance, start-up business owners will have to make a difficult choice.
Start-up businesses don’t have to buy all the insurance coverage available in the market. Their investment should revolve around the four basic types of insurance programs that protect the fundamentals of business. It should include the worker’s compensation insurance, auto and property insurance, liability insurance plus a different kind referred to as the umbrella insurance that covers everything else.
Your employees are a vital part of the success of your business, that’s why you need to protect them by buying the worker’s compensation insurance. It covers the medical and rehabilitation expenses as well as the lost wage of employees who become victims of an accident in the workplace. This type of insurance will make sure that the employees are properly compensated while protecting the assets of the company.
A comprehensive liability insurance should also be something that start-up business owners must invest in. This type of coverage ensures the company that whether it is a direct complaint against the business or a complaint against an employee, the company has enough budget to see through legal action. The claims that may be made by the employees or the customers can hurt the business, and this is the insurance that takes care of that.
Insurance, they say, is something that you buy because of the effects of the perceived risks that come with doing business. Since it is about preparing for a disaster before it strikes, most business owners need it not as important as the other urgent concerns that need financial investment. However, one thing remains true for all companies — it doesn’t take that much to destroy everything that one has worked so hard to build.