What You Need to Know about Insuring Your Startup

The decision to start your own business isn’t an easy one. Many people leave comfortable and reliable positions at established companies so that they can live their dream to work on the products and services they want on their own time. With the inevitable risks from the start, it’s crucial that you don’t put your long-term future at further jeopardy by failing to take out the right insurance. Here’s what you need to know.

Contents Insurance

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When you take out contents insurance, you’re protecting the goods inside on your premises. This could be your I.T. equipment, product inventory, or a number of other items. If you’re going to be running your business from home, you may be under the impression that your home insurance policy will cover you against any the damage or theft of these goods. However, it’s important to know that while some policies can include protection for those working from home, these are often more restrictive than standalone insurance from a provider like Catlin would be. Restrictions on your homeowners policy could mean you aren’t fully compensated in the event on an incident.

Product Liability

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If your business supplies physical goods, you’re responsible in ensuring that these items are safe for use. Assuring quality insurance in this instance will not only give your business a solid reputation to build upon for the future, but it will also reduces the chance of any legal action being taken against you down the line. Certain types of goods are governed by different health and safety laws so it’s crucial that you know the specifics of your industry. Failing to keep up with these standards could result in you losing the trust of your wholesalers or, in the worst case scenario, losing your right to trade altogether.

Employee Liability

Employee liability insurance protects the people who work for you, ensuring that you’re able to pay for any damages if an employee is injured while working on your premises. In many instances, employee liability insurance is mandatory by law, even if you only have a single employee. Not only is this is crucial in safeguarding your business against the prospect of having to pay hefty legal fees, but it also demonstrates an understanding that you have your employee’s safety in mind. Insurance, as a whole, isn’t something that you should try to cut corners with so taking out the proper policies should be an early prerogative when starting your new business.

Ken
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