Start-up companies have a lot of things to consider if they want to thrive — and a sound insurance policy is one of them. They will be subject to many risks and a single catastrophic event can wipe out everything they worked for. They should protect their business, including home-based operations, with the following coverages.
Worker’s Compensation Insurance
Worker’s compensation insurance covers employees against injuries incurred while doing field work. It serves as a wage replacement and provides medical aid. This also means that the employee will surrender his right to sue the employer for the incident.
This kind of insurance is essential for a business owner as this will protect the company from legal complications. Of course, laws differ in every state, but all companies who have W2 employees are required to have this.
General Liability Insurance
All businesses need to have liability insurance, which functions as both defense and damages if the company, services, products, or employees injure somebody or cause property damage.
Business Owner’s Policy
This type of policy will cover everything a business owner needs. The business owner’s policy includes crime insurance, vehicle coverage, property insurance, and business interruption insurance. Employers can amend the inclusions of BOP depending on the needs of the company. A business owner will typically choose this package rather than getting individual coverage as it costs less.
Professional Liability Insurance
Professional Liability Insurance, or Errors and Omissions Insurance, provides defense and damages to the company if they fail or improperly render professional services. This is valid for any professional business, such as technology providers, hair salons, insurance agents, real estate agents, consultants, notaries, lawyers, and accountants.
Personal Umbrella Insurance
Covering various types of claims, such as auto and homeowners, personal umbrella insurance is available in USD 1 million increments. However, business owners can only use it when they have exhausted all liabilities on their other policies.
Start-up companies should invest in different insurances that will help cover their company, even if it could put a dent in their still small budget. It will serve as a safety net in case they face a potentially damaging situation.