Starting a business is a dream for millions of entrepreneurial-minded individuals, from launching a new and innovative product line to opening a professional services firm. Coming up with the time, money and drive to take the first steps forward is a serious undertaking, especially with all the details that have to be just right.
There is no one way to start your own business. But protection should be a big part of your safety net from the very first day of operations. Without business insurance, you may be putting your company at risk before you even have a chance to get started.
Insurance for Entrepreneurs
Renting office space, purchasing equipment, setting up books, and making sure your website is up to par are all crucial elements of launching a business. Something like insurance might easily slip your mind. And why wouldn’t it? After all, you may not expect to be at risk for a claim before your business is up and running, right? Well, not quite.
Today’s risk environment means there is no way to know what the future has in store. No business is immune from risk – even as you chase the upside of your dreams. A workplace injury that puts you out of work, a natural disaster that ruins your equipment or interrupts your operations, or a customer who trips and falls on your doorstep can be all it takes to bankrupt your brand when it’s just getting started.
Many small business owners, especially new entrepreneurs, believe that insurance means diverting limited resources into an expense that may prove to be unnecessary. But this can be a dangerous mistake. Far too many businesses fall victim to issues without the proper coverage, leaving them with no reprieve. In fact, almost 40% of small businesses never reopen after a disaster, demonstrating the severity of challenging situations without the right protection.
Choosing the Right Insurance
Insurance can make a huge difference to the success of your business. Just like your family and its valuable assets (such as your car and home), your business deserves assistance should trouble come to call. Understanding your options can ensure you have the coverage you need, with the right professional guidance from an independent agent.
General Liability Insurance
Protecting against property damage, bodily injury, and personal injury for third parties, these plans protect against complications that can arise through the course of normal business. In general, this kind of insurance covers the major assets of your business and may be available with property insurance in a businessowners policy (BOP) bundle.
Property Insurance
While general liability insurance can protect what you might have to pay to others if you are responsible for their injury or property damage, property insurance covers your premises and business property. Property insurance coverage is far-reaching and expansive, paying for damages from risks such as:
- Fire
- Explosions
- Theft
- Damage from vehicles
- Vandalism
D&O Insurance
In a liability-heavy climate, it’s necessary to protect your business from the risk of lawsuits and other legal issues. Directors and officers (D&O) insurance specifically covers directors and officers who are sued in the normal course of business over business-related affairs. For small businesses with only a few employees and limited revenue, the cost for this coverage can be low.
Cyber Liability Insurance
With the risk of digital crime on the rise, protection for your digital resources is now more important than ever. Cyber liability insurance can safeguard against losses caused by hacking, data breaches or technological issues that may interrupt your business and expose your customers’ information.
With a whopping 50% of small businesses making it through just four years or less, taking the right steps early on can be the difference between moving forward and closing your doors forever. Businesses in their infancy need the right insurance coverage. Not protecting the future of your business can leave you stranded in the past. With plenty of affordable options available for small businesses and startups, there’s no reason to leave any facet of your new company vulnerable.
Contact RC4 Insurance Agency, LLC to help with your startups’ insurance needs.
Article from Selective Insurance Company
