Insurance for start-ups


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.  Br anding 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.  M andatory 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.

The Business Implications of Disability Insurance

[youtube][/youtube]Dr. Szatkowski was a prosperous, successful member of a Tarzana dental practice until he was diagnosed with amyotrophic lateral sclerosis (ALS) and was forced to retire in 2002. His story is related by his wife of 35 years, his practice partners and his insurance agent as Frank is now in a wheelchair and requires a ventilator to breath. An overhead disability practice purchased by the practice paid Frank’s third of the office expense. A disability buyout contract delivered a lump sum payment to the corporation, allowing his partners to purchase Frank’s share of the practice without personal or corporate financial stress. A personal disability insurance contract helps the family to maintain their st andard of living while caring for Frank at home with the assistance of around-the-clock care.

Not Enough Help for insurance or otherwise

[youtube][/youtube]Jermaine Suggs is a young man who lives in a part of Alabama that makes Watts seem prosperous. Four years ago, he lost both his gr andmother and his father in the space of a week. He left college to try and continue his father’s business, but as there was insufficient life insurance and no business insurance, the company failed. Unable to return to school, James has worked at a gas station for three years, now having attained the title of assistant manager. He hopes to return to Concordia College soon to complete a degree in business. He emphasizes that an adequate life insurance policy is especially important for a low-income family as they already have fewer resources on which to rely.