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.
