Insurance for Startups

Why Is Insurance for Startups Important?

Businesses face lawsuits and liability claims every day. As you start yours, you’ll want to consider the potential risks you may face and know what your state requires for insurance. Remember that without coverage, you’ll have to pay out-of-pocket for damages or legal claims filed against you.

The price you pay for coverage will depend on your business, because the business insurance cost for a startup varies by industry. For instance, companies with higher risk levels will need to pay more for their premiums. This means a construction business would have a higher insurance price than a tutoring company.

If you have questions about our policies or what you need to stay protected, we’re here to help. You can find all our coverage options and learn more about what insurance do I need to start a business?

Types of Business Insurance for Startups

Business insurance for startups varies based on the size of your company. A small, self-funded startup may require different coverages than a business worth $30 million.

Your company will likely need multiple insurance policies. To make sure you get the right insurance, we recommend getting a Póliza para propietarios de empresas. This policy bundles property and liability insurance together, which can be convenient to manage and can also save you money.

Seguro general contra terceros

General liability insurance for startups helps protect your business from claims of:

Lesiones corporales
Daños a la propiedad
Libel
Slander

So, if a customer slips and breaks their ankle on your business’ property, your general liability insurance can help pay for their medical treatment.

Seguro de propiedades comerciales

Comercial property insurance for startups helps protect your business’ physical location and property, including your:

Tools
Equipos
Inventario
Muebles

For example, if a fire causes property damage to your business’ inventory, this insurance can help pay for the repairs or replacement costs.

Seguro de responsabilidad profesional

Professional liability insurance for startups, also known as errors and omissions coverage, helps pay legal fees when your company makes a mistake in the products or services you offer. So, if your employees give false financial advice to a client, this coverage can pay the legal expenses associated with the claim they file against you.

The answers to these two common questions may help you decide if you need professional liability insurance:

On top of this coverage, you may also need management liability insurance to help protect any directors and officers of your startup from lawsuits. To purchase E&O coverage, obtener una cotización from us today.

Seguro para la pérdida de datos

We believe every startup should have a computer security breach plan, because data theft or loss can be expensive. You’ll want part of this plan to include cyber liability and data breach insurance for startups. This helps cover costs for things like:

Identity protection solutions
Las relaciones públicas
Legal fees
Responsabilidad

This coverage also helps you respond to a data breach as soon as possible, restoring the public’s confidence in your business. Keep in mind that this insurance protection can be important even if your business is at a low risk of data theft.

Seguro comercial para automóviles

Not sure about the difference between commercial and personal auto insurance? Your personal car coverage helps protect you as the owner of a car and anyone else you give permission to drive it.

Commercial auto insurance for startups, on the other hand, helps cover you or your employees if you’re at fault for an accident while driving your company vehicle. It doesn’t, however, protect employees if they drive their personal cars for work purposes. In cases like this, you’ll want non-owned auto coverage. This extends your commercial auto policy above and beyond what your workers have on their personal auto coverage.

On top of a non-owned auto endorsement, you can also get specialized commercial auto coverage. This includes electronic equipment insurance to help cover GPS or DVD units you install in your cars.

Seguro de compensación para trabajadores

Workers’ compensation is required by law in most states. This coverage is important for providing your employees with benefits if they suffer a work-related injury or illness. These benefits can help pay for your employees’:

Atención médica
Lost wages
Disabilities
Funeral expenses

Seguro comercial suplementario

If you know how a personal umbrella coverage policy works, a commercial one works similarly for your business. However, instead of extending policy limits for home, renters or auto, it gives your business extra liability coverage. We’ve put together a whole page of details if you’re wondering exactly what commercial umbrella insurance is.

Commercial umbrella insurance for startups can help pay:

Legal fees
Medical bills
Damage expenses

Business Travel Insurance

If you or your employees travel frequently for work, business travel insurance can help ensure you’re protected. This coverage will help pay losses if plans change or a disaster strikes. Typically, its protection for employees falls within these types of travel coverage:

Trip cancellation
Medical insurance
Evacuation insurance
Baggage and personal items loss
Seguro de vida

Some travel insurance basics to keep in mind are that prices vary based on the amount of coverage you need, and rates increase for those over the age of 50.

Seguro comercial contra inundaciones

There are certain coverages that are only important for specific businesses, like commercial flood insurance for startups. This policy helps cover your company if flooding damages your:

Floors
Walls
Ceilings
Equipos
Accesorios
Muebles
Inventario

You’ll want to buy this policy separately from your commercial property insurance. But how do you know if you even need it? Your location is a big factor in whether you should carry flood insurance. It would be in your business’ best interests if:

You’re located in a state with heavy snow
Your area is prone to flooding in the spring
You have significant amounts of rainfall during the year

Startup Business Insurance Costs & Deductibles

The cost of business coverages vary depending on the types of insurance products you need and the amount of protection each one offers. This means higher risk companies like a construction startup will likely pay more for their insurance coverage than businesses like retail stores, where there is less danger on the job.

Some ways to lower your startup business insurance costs incluyen:

Comparing coverages, because not every startup needs the same insurance protection
Bundling policies to get a discount when you have more than one policy with the same provider
Driving safely, because a good claims history can keep your auto coverage premium from increasing
Looking into discounts, because insurance companies offer a range of savings options

As you buy business insurance coverage, you should also be aware of your deductible. This is the amount you’ll pay out-of-pocket for a claim before your insurance company covers the rest of the expenses up to your policy limits. Usually a higher deductible can save you money on your premium, but you’ll pay more out-of-pocket if you need to make a claim.