Are you in the process of starting a new business? If so, you need to consider a few different insurance policies. They each have their own purpose and can save you a lot of money, time, and effort in the long run.
Discover three types of insurance you should have for your startup business. Read on for more information.
Professional Indemnity Insurance
If you are offering any type of professional advice or services, you need to have professional indemnity insurance. This type of policy will protect you if a client suffers a financial loss because of your advice or services.
For example, say you are a startup consultant and advise your client to invest in a certain stock. If that stock ends up tanking, your client could sue you for their losses. With professional indemnity insurance, you would be covered against any legal fees and damages you may be ordered to pay.
Most startup businesses will need some form of professional indemnity insurance, so make sure to speak with your startup insurance broker about this coverage.
Public Liability Insurance
Public liability insurance is another must-have for startup businesses. This type of policy will protect you if someone is injured or their property is damaged because of your business activities.
For example, say you are a startup food truck owner, and someone slips and falls while waiting in line for your food. If they decide to sue you, public liability insurance would cover your legal fees and damages you might have to pay.
No matter what type of startup business you have, it's a good idea to have public liability insurance. This coverage can give you peace of mind knowing that you are protected in case something goes wrong.
With more and more businesses moving online, it's important to have cyber insurance. This type of policy will protect you in the event that your website is hacked or you suffer a data breach.
For example, consider a situation where you are a startup e-commerce store owner and your website is hacked. You could be held liable if your customers' credit card information is stolen. In such a case, your customers have grounds to sue you if they actually suffer any financial losses.
Cyber insurance is an important type of coverage for all businesses, but it's especially important for startup businesses that are still establishing themselves. If you don't have cyber insurance, now is the time to get it.
Contact a startup insurance broker to learn more.
Purchasing insurance — the right insurance — is one of the smartest things you will ever do. While there are definitely differences between homeowners, car, life, and health insurance policies, they all serve the same purpose when it comes down to it. Insurance protects you against financial ruin should a tragedy happen in your life. In the case of homeowners insurance, that tragedy could be a fire or a flood. In the case of life insurance, that tragedy would be your death. The more you learn about insurance, the better the decisions you'll make when purchasing it. So dive into the articles here, and start reading.