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When the calendar flips to a new year, hype explodes over the phrase or phrases like ‘New Year, New You.’ However, for the business minded, the new year – or any time of year – may focus more on ‘New Year, New Start-up.’
From concept to creation, every minute has been spent developing the dream start-up company. Branding reflects the mission, products, and services, social media is ready to infiltrate the target market, and the business plan has become a personal member of the family. The ingenuity, emotion, and finances poured into the start-up creation need to be protected.
It is critical for every start-up to get the proper insurance coverage and should be an immediate priority. On a foundational level, insurance is necessary to get funding for a new company. Whether from a bank or private investor, nobody will give a new business financial support without insurance. Additionally, vendors won’t negotiate or sign contracts for partnerships without the proper insurance and consumers find businesses without proper insurance to be untrustworthy. Without insurance, your start-up won’t start.
Proper coverage provides protection. It is a fallacy to think that a new company has nothing to fear or to safeguard. Insurance protects the business owner, Board of Directors, and the decisions made on behalf of the company. Start-ups need protection against potential lawsuits from competitors and former employees, and need the assistance provided in the event of loss from fire, theft, or cyber-attack. The protection provided by insurance as well as why it is needed is an infinite combination specific to each new business.
There are numerous types of insurance coverage necessary for new businesses.
General Liability Insurance– An insurance policy issued to business organizations to protect against liability claims for bodily injury and/or property damage arising out of premises, operations, products, and completed operations; and advertising and personal injury liability.
Commercial Property Insurance – Insurance that covers any type of commercial property, protecting from such things as fire, theft and natural disaster.
Worker’s Compensation Insurance – Coverage that protects employees and the business. Mandatory in many states, worker’s compensation covers lost wages and medical treatment resulting from employee work-related injury or illness, as well as services needed for recovery assistance and the return to work.
Professional Liability Insurance – Also called professional indemnity insurance and more commonly known as Errors & Omissions (E&O) in the US, it is a form of liability insurance that helps protect professional advice and service providing individuals and companies from bearing the full cost of defending.
Directors and Officers Liability Insurance – Often called D&O, this insurance is payable to the directors and officers of a company or to the organization(s) itself, as reimbursement for losses or advancement of defense costs in the event an insured suffers such a loss because of a legal action for alleged wrongful acts in capacity as directors and officers.
Cyber Liability Protection – Insurance that covers liability for data breach in the event customers’ personal information – Social Security or credit card numbers – are exposed or stolen by a hacker or other criminal who gained access to the firm’s electronic network.
The listed types of insurance partner with other coverage to provide the support and protection every new business needs. Susman Insurance Agency has the experience and capability to determine coverage needed for all facets of a startup business. A personal approach is used by meeting in person to learn about the unique needs of the business, evaluate risks, and create the perfect insurance coverage plan. Susman Insurance Agency provides the policies that start-ups need. While insurance coverage doesn’t guarantee start-up success, it does promise protection and peace of mind.