Starting a new business is exciting. Whether it’s your first or tenth venture, being your own boss is an amazing experience. One of the most important things to consider when opening a business is insurance. While it’s not a mandatory requirement (though it should be) knowing how much coverage you need is an important consideration before you open your business’s doors for the first time. Here is Insurance Online’s guide to when does your California start-up need business insurance.
Why Do Start-Ups Need Business Insurance?
Start-ups, by their very definition, aren’t the same as your typical business. Start-ups are generally considered temporary enterprises, which are working to create and deliver new, innovative services and products to the world. While start-ups may not be considered a “business” in the traditional sense, however, as they are working more towards developing a sustainable business model, they still should consider business insurance to ensure their hard work isn’t washed down the drain.
What Types of Insurance Do Start-Ups Need?
If you are considering a start-up venture, there are several essential business insurance coverages you should consider. Of course, these may vary depending upon the nature of your business and your liabilities, but generally, they should include the following:
General Liability Insurance
Also known as Commercial General Liability (CGL), general liability insurance protects your business from another party’s claims of bodily injuries, medical costs or property damage. General liability insurance, for example, will cover the costs if a person trips and falls on your premises if your data is destroyed by a leaky roof or other such instances.
Professional Liability Insurance
Professional liability insurance, also known as error and omissions insurance (E&O) cover’s businesses from claims by another individual. Professional liability insurance can provide critical assistance for start-ups against negligent acts, such as when a consultant makes a mistake with employment regulations resulting in a lawsuit. In this instance, professional liability insurance would cover the cost of hiring an attorney to defend your business.
Workers Compensation Insurance
One of the essential types of coverage for any business is workers compensation insurance. Workers compensation covers the costs of any injuries to your employees while on the job – be it on-site or elsewhere. Depending on the level of coverage selected, workers compensation insurance may also cover an employee’s lost wages – which will help protect your start-up from potential employee lawsuits.
Property Insurance
Property insurance is a great way to protect your start-up's actual physical assets. A good property insurance policy should cover the costs associated with repairing or replacing your losses in the event of natural disasters, as well as man-made disasters, such as fire or theft. And, If you are in an area prone to flooding, make sure to remember that flood insurance is a separate policy!
Launching a start-up is tough work. Finding the right business insurance shouldn’t be. At Insurance Online, customers can compare hundreds of quotes – and not just from the big providers – at any time 24/7. We’re more than just an insurance company. Our agents live and work in the same communities as you so you can be assured you’ll get the right policy from an agent that understands your needs. Insurance Online is just a click away. Call us today at 800-520-1559 to speak to an agent about business insurance.