The decision to become an entrepreneur is probably the most liberating and frightening of all decisions you will make during your lifetime. As an owner of a startup, you will have to make tough choices and go through many ups and downs, all the while hoping for a better tomorrow. Foreseeing and mitigating risks is going to be crucial to ensure success. One of the most trusted resources to help you sail through difficult times is, of course, insurance.
Why do you need insurance?
As an entrepreneur, you're going to have to think about anything that could possibly expose you to any kind of risk – financial or otherwise. This includes:
- Liability - Every startup has to consider all possibilities of exposure to liability. Liability could be due to exposure to third parties, from your staff, harm caused due to your products, etc.
- Obligations to employees - While your employees are hard at work making your dreams come true, you also have an obligation towards their safety.
- Risks to physical assets - Depending on your startup, you will have the responsibility of many physical assets like offices, computers, machines, etc.
- Travel - A startup's employees may need to undertake travel for various purposes like marketing, implementation, support, etc.
- Health - Retaining valued employees requires startups to undertake measures to provide for their physical and mental well-being.
Liability insurance
Business Insurance providers offer many options for startups to handle liability.
- Commercial - This takes care of any third party liability imposed on you as having being caused due to negligence by you or your staff.
- Product - This takes care of any liability caused by your product when it being used by your customers.
- Credit - This covers any liability due to non-payment of your dues by those who owe you money.
Worker compensation
This insurance will take care of any accidents that happen to your employees when they are on the job. Not only does this protect your people, but it also prevents you having to make large payouts, which could end up ruining your entire budget for the month.
Asset insurance
Again, insurance carriers have many alternatives to help you protect your assets.
- Property/Asset - Entrepreneurs can choose to insure the building structure or the belongings within, or both, in the event that you are an owner. This will protect you in the event of disasters like fire, theft, etc. You can also choose to insure a specific asset that is very critical to the functioning of your startup.
- Auto - Any vehicles you use, such as vans, cars, or trucks, can be insured using either comprehensive or third-party insurance to avoid any losses due to accidents.
Travel insurance
Startups that require regular travel need Travel Insurance to handle cancellations or delays in travel schedules. You will also get cover in case of medical emergencies, lost or delayed baggage, or various other scenarios.
Group health insurance
Insurance providers provide excellent group health options for new entrepreneurs to provide to their employees. This can also be expanded to include coverage of the employee's dependents.
As the owner of a startup, you are constantly on a tight budget, with a thousand priorities all moving along in parallel. The smallest of expenses, that come out of the blue, can throw your business into a tizzy. Learn about the various insurance options you can avail of by speaking to an expert today!
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