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Your New Business

When you first announce that you are starting your own business, often the congratulatory well-wishes are quickly followed by unsolicited advice and opinions about…well, about everything.  From the name to logo to location to EVERYTHING – there will be someone there to tell you what you must have or need to do.   Guess what?  We are going to tell you what you need as well – at least in terms of insurance.  Having the right AND the right amount of insurance is crucial, critical, and mandatory for all new businesses.  Navigating the waters of insurance can sometimes be a rough and confusing experience.  That is where Susman Insurance Agency comes in and relieves you of confusion and provides answers to all your questions.

The insurance every start-up needs:

No matter what type of business you have, you need General Liability Insurance.  We speak about and you hear about liability insurance more often than you are aware of.  Not only does it protect against small calamities, but also cover any bodily injury or property damaged caused by you, your employees, or your product.  Nobody will do business with your new business without this type of insurance.  There is usually a standard amount for any new start-up, but the amount of liability insurance you need will be specific to your business.

What if one of your employees injured themselves on the job or develops a disability that prevents them from continuing working all together? Your start-up needs Worker’s Compensation Insurance. Not only does it provide protection from any potential legal complications, but it is also required by every state.  Yes, you must have it.  It provides benefits to employees injured while working.  Once they choose to utilize the benefits, they will be unable to pursue legal action against you or the business.

If you own anything (yes, anything) that is part of your new business, you need Property Insurance.  Office equipment, personal property, tools, company cars, computers, buildings, etc.… If the loss of any of those would prevent you from continuing ‘business as usual,’ you need to protect every one of those items and more.  Along similar lines as property insurance, there is also Commercial Auto Insurance.  This insurance protects vehicles that are used for any/all business purposes and covers any damages caused by car accidents, theft, vandalism, and more.

Professional Liability Insurance is something your start-up cannot go without.  Also known as Errors and Omissions Insurance, it provides defense and damages for any of your products or services that cause financial loss.  You might be thinking that it sounds a lot like General Liability Insurance – and it does – however, the level and type of protection are very different.  That is why you need Susman Insurance Agency to clarify such details and make sur e your new business has proper coverage.

Worried about what might happen if one of your partners or board members makes a major mistake that causes financial damages to the business?  You need Directors and Officers Insurance to protect you and the business against their bad decisions and help cover any damages or legal fees.  While we are talking about the VIPs within the hierarchy of your business, you should also consider getting Key Person Insurance.  If one of these people should die, this policy pays put a lump sum to the business and allows you to continue running the business without financial burden associated with the loss of the key person.

Transitioning from having a policy that covers the death of a key person, you also need a policy that covers your own demise.  Life Insurance will pay your beneficiary an amount based upon the premiums you paid and relieve them from financial burden that happens after a loved one dies.  You should already have Life Insurance and if you don’t, GET IT!  You pay a premium in exchange for the payment of benefits to the beneficiary. This type of insurance is very important because it allows for peace of mind.

Plan on utilizing any type of technology for your start-up?  You need protection! For starters, consider a Data Breach policy.  Storing any type of personal information on your computer network puts you at major risk for hacking and cyber-attacks.  Data Breach protects your business against the loss of information.  Additional policies for more severe cyber-attacks are also available – and yes, we believe you need them!

Let’s pretend you already have all the insurance needed for your start-up, but then you worry that you don’t have enough.  You can get additional coverage on all polices with Personal Umbrella Insurance.  This options allows you to extend the level of coverage on your current polices.  Once your original policies have been used, personal umbrella insurance will cover the rest (based upon the amount you purchased).

An option to bundle numerous insurance policies for your start-up comes in the form a Business Owner’s Policy.  This tidy package often includes business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance.  Your business needs are evaluated so the best bundle can be created for your specific needs.

If you don’t think you need any of these insurance policies, you are wrong.  If you think you can get by with only one or two policies, you are wrong – again.  Your start-up is the newest member of your family.  You protect your family with such insurance as health, auto, home, and life.  Why wouldn’t you choose to protect your newest an investment just the same?

 

 

 

 

Insurance for start-ups

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.