3 Essential Types Of Insurance Your Start Up Business Needs!

 

As a start up, you need to make sure you’re protecting your business with the right insurance from the very beginning, even though it might not feel like a priority when you’re really busy. However, without the protection that insurance provides, then you may be setting yourself up for failure from the beginning. That’s why you should spend some time working with a business insurance broker to find the right insurance for your business and industry, as it could be what saves you one day. 

Expect the unexpected, and insurance helps you to do just that. Avoiding unnecessary expenditure as a new business will be a priority, however this definitely shouldn’t be considered as unnecessary, so prepare your insurance, get it right the first time and you’re doing what you need to protect your business.  

Key Man Insurance

First up, key man insurance is really important for a small business, as it insures people who are vital to the running of a business. As a start up, there will likely be a small team of important people, so in the event one of those people became critically ill or died, key man insurance would pay out to help ease the financial burden of this. This could be to pay back investors, cover profit losses, bring temporary staff in or to clear business overdrafts. At the beginning, it’s so important to have a secure and safe team to grow the business, and key man insurance can help you to establish that. 

Professional Indemnity Insurance

Next we have professional indemnity insurance, which is a type of insurance that protects your business against claims from customers or clients. If a customer or client believes that your services have been negligent and that has resulted in a financial loss, they can put in a claim against your business that could be catastrophic. This is especially the case if you’re working with large businesses. You might think that your business is bulletproof and no one will make a mistake, but anything can happen, many things that are out of your control, and so you need to prepare for that. 

Cyber Security Insurance

Another type of insurance that you absolutely need for your startup is cyber security business. Every kind of business needs cyber security insurance, even if you’re not in the tech space, as you will have some kind of data or internet usage within your business. As technology gets more advanced and there are great automations which can help businesses, unfortunately the scams and types of fraud out there also get more advanced. You can follow all of the right precautions and have the right cyber security cover, and then someone can still get through and hack into your systems. When this happens, it can cause serious complications for a business, so the cyber security insurance helps to cover remediation costs, restoring systems and general cover to help repair losses as a result of data breaches.