Business insurance exists to protect your business, including its assets, investors, co-founders and employees. These are the best advantages a business insurance have to offer.
A startup, regardless of its stage, needs protection as well. Should any risks occur, your insurance could be the only investment that is capable to help you.
But while it is necessary, finding the right insurance can be challenging too.
Getting your signature on the right policy from the right insurance company is not something less important. In fact, it is one of the most important process. You don’t want to get extra headache from your insurance company when something goes wrong with your business.
Today, many insurers offer a whole lot of protection against business risks, including assistance in facing law suits and cyber attacks. Some of them are even expanding their coverage to protect their clients from social media mishaps.
Followings are a list of business insurance product overviews. You may want to be noted that some coverage may not be applicable to the startup protection you required, but they can help you choose which one you might need before making your phone call to get the specific insurance policy.
Employers Liability Insurance
This is the most basic protection you should have to run a business, and this product is provided by almost any insurance company.
It is necessary to protect yourself as a founder, your employees and any of your startup teams, temporary ot part-time staffs or partners from any illness or injury.
It can also be a great help if you are bootstrapping, especially when you don’t have that much capital to cover unexpected expenses.
In some countries, it is a legal requirement for a startup business to insure its people.
Cyber Liability Insurance
According to recent survey, almost 40 percent of total cyber attacks were targeted to small businesses and startups. Cyber insurance exists as final defences, especially in the case of unrecovered lost.
The insurance policies can cover your startup for breach of data protection laws, where it is insurable by laws, system recovery costs and also financial loss caused by the unfortunate event.
But bear in mind that, though cyber insurance policies could cover various protections, but seeking other advice from professional to recover your data still is your best option.
Professional Indemnity Insurance
Professional Indemnity (PI) insurance provides protection for business that offer professional service or consultation, such as information technology (IT) consultant, software developer, advertising agency, digital marketing agency and other type of service providing business.
Some of the coverage includes protection if you or your staffs make mistake which cause your client suffers in financial or other issue that occur as a result. It also covers legal expenses and compensation cost.
Public Liability Insurance
We might never realise it, but unexpected things could happen out of our reach. That is why Public liability insurance was invented.
Public liability (PL) insurance offers protection when you or your employees cause trouble or harm to public member, whether on your business premises or outside the property.
This type of insurance covers any legal and compensation that could cost you or your business, ofcourse with further evaluation of the incident.
Media Liability Insurance
Living in digital age has ease our life a lot, but there are some negative impacts as well. A few examples are the usage of copyright data such as text-based contents, images and videos or occurance of misleading statements which are shared by unresponsible persons online, such as blogs and social media.
Media liability insurance offers protections for your media content and advertising. So if anything happened, you can rest assured that it can cover your legal fees and other compensation costs.
There you are, a short introduction of startup insurance and types of protections that you can manage to get to cover loss or at least, minimize the risks of your startup business.
The insurance industry has experienced expansion in its products and services to accommodate the needs of startup and business in digital era.
There are still many type of insurance that are not listed here. You will be surprised of how wide the protections a startup business can get now.
I hope this post can be useful for you and your startup.
Wahidin Wong is a digital marketer. He is also a jazz and bossa lover.