Posted by : Dan Levenson Tuesday, September 9, 2014
No business is safe from several factors that might put its critical assets in trouble over time. Several untoward happenings like natural disasters or civil unrest subject any type of enterprise to great risks, especially those that are particularly new in their field or industry. Therefore, to protect themselves, startups need to have these essential insurance coverages at their disposal:
General liability – Contrary to popular belief, this type of insurance doesn’t make a business immune to lawsuits, but rather provide financial protection should legal claims find their way to the doorstep. Structured to cover aspects like financial settlements and legal costs, liability insurance effectively shields a startup company’s assets whenever unsatisfied customers decide to take their claims to court.
Property – Startup business owners need to take note that while profits are good, their physical assets are also critical. Property insurance basically encompasses assets like equipment, inventory, furniture, and even the entire building, as well as accounting records. This specific policy (provided that all relevant terms are agreed upon) can protect a business’ physical assets against damages from disasters, man-made or natural, and whether they’re owned or leased.
Worker’s compensation – In several states and cities, businesses are mandated by law to have this type of insurance. On simple terms, this coverage compensates an employee for lost wage and medical expenses in the event that he/she gets injured on the job and requires medical treatment, in exchange for an agreement that the employee doesn’t sue the employer at any time.