You’ve finally reached the end of the grueling journey in creating your first startup. We know the feeling, and we know how good it must feel to be here at the end. But before you start celebrating we need to cover a very important to do. Insurance. Your business needs it. After a grueling process of forming your company, you might have forgotten that you could lose all that hard work in the blink of an eye if you go forward without checking for the proper business insurance quotes. Below you will find business insurance tips that will help your startup stay safe and profitable for years to come.
Key Person Insurance
As a business owner, many people depend on you. Customers and employees alike look to you for leadership and guidance. Your company could suffer if you die without a mechanism in place to replace your expertise. If you have key person insurance, you have the assurance that your business has the means to continue if you or your key employee dies.
Upon death, key person insurance pays a sum to the company that will help the company recruit and train a replacement that can fill the shoes the death empties. When you buy this insurance, your key people will know how much you value them, building a cohesive team that will loyally work to achieve your goals. Vendors and banks also like to know you have key person insurance because it improves the chances your company will pay bills after your demise.
Directors and Officers Professional Liability Insurance
If you formed a corporation, you might need to buy directors and officers professional liability insurance. If you hold a board position, if your board of trustees makes controversial decisions, or if your products or services have the potential of harming people or property, people can sue your business for damages. When you have this type of insurance, your insurer will pay for claims made against you. With so many people in our society looking for ways to gain wealth through litigation, you cannot afford to go without this type of insurance.
General Liability Insurance
Regardless of where your business operates, its facilities represent a potential liability that could destroy it. General liability insurance provides coverage if someone gets hurt while on your premises or if a fire or natural disaster destroys your business property. According to personal injury attorneys, in cases of premises liability, a judge and jury look at several factors when determining if the injured person should receive a settlement, but ultimately a property owner is legally liable for injuries suffered by others on their premises. Your insurance will also cover problems resulting from false advertising, copyright infringement, and other acts that hurt others without bodily injury. You could incur substantial legal and medical costs if one person gets hurt on your business property. So buy insurance with the optional coverage you need to protect your firm.
Workers Compensation Insurance
If an employee gets hurt while working for your company, you could be liable for thousands of dollars of medical expenses. Workers compensation insurance makes sure your employees get the care they need for job-related injuries while protecting you and your company from liability. Laws and regulations where your business operates might mandate that you buy workers compensation insurance. As you shop, keep applicable requirements in mind to make sure you buy coverage that meets your legal and business requirements.
Business insurance for your startup can help your company survive lawsuits, accidents, deaths and other routine occurrences. Although you might face the temptation to avoid buying insurance to save money, the reasonable costs associated with business insurance makes it worthwhile in the end. So don’t think you’re cutting any corners by not getting insurance. What you will be doing is creating more of a headache later on down the road if you skip this very important step.