You might be wondering why your business needs insurance if it’s a startup. Nevertheless, all forms of business face a lot of risks and lawsuits every day, making it necessary for you to be prepared for the unforeseen future. Without the appropriate insurance, you might end up paying for the damages and legal claims expenses out of your own pocket, which can be financially draining for someone just starting a business.
As a startup business owner, you also want to be familiar with what kind of insurance your state requires for businesses. The price you pay for insurance coverage for your startup business is dependent on how high of a risk your business is. For example, a construction company will pay more for coverage than an accounting company.
Different Types of Startup Insurance
Just as the price of your insurance is dependent on the amount of risks faced by your business, the type of insurance you plan to purchase is also dependent on the size of your business. This is because the bigger the size, the more coverage will be needed to protect your business.
- General Liability Insurance for Startup: This policy helps to protect your startup business from claims like bodily injury of an employee or customer, property damages, libel, and slander. The expenses acquired from any of these claims will be adequately covered by the general liability insurance policy.
- Commercial Property Insurance: This policy not only protects your property or building but also everything in it, such as equipment, furniture, tools, and inventory. In case of damage or loss from fire or natural disaster, the policy helps cover repair or replacement costs of the damages or lost properties.
- Workers’ Compensation Insurance: This policy mandatorily required by most states, and it covers employee-related expenses like injuries, medical care, lost wages, and funeral expenses suffered by employees from work-related activities.
- Commercial Umbrella Insurance: This policy works like personal umbrella insurance by giving your business extra liability coverage and covering expenses like damages, legal expenses, and medical bills.
- Business Travel Insurance: This policy is a must-have if you and your employees travel a lot for business-related purposes. It can help cover expenses in the event of a change of plans or sudden disasters. The following are a few of the expenses covered by the business travel insurance policy: trip cancellation, evacuation insurance, life insurance, medical insurance, and baggage and personal item loss.
- Data Breach Insurance: This policy can help protect your business from devastating cyberattacks that could damage your company’s reputation. Loss of data or data theft is expensive, and this policy has coverage for identity protection solutions, public relations, legal fees, and liability.
These are some of the insurance policies you might want to purchase for your startup in Lubbock, TX. If you have more questions related to business insurance, contact our experts at Advanced Insurance Group today. We are here to assist you with all your coverage needs.