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Insurance Policies a Startup Company Should Consider

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Business is an activity associated with heavy risk. No matter how big or small the business is, not having proper insurance is a risk that no business can afford. It is the quality of a good business owner to choose insurance in the nascent stages of the business as part of risk management. Insurance is essential for a startup company irrespective of the amount of capital invested.

A startup company has to secure its future by insuring every important aspect of business. This ensures security and the ability to overcome any kind of hurdle that might hinder the functioning of business.

There are several business insurance policies, which are very helpful for the startups. Some of them are given below:

Business property insurance
Primarily, a startup company should consider insuring its assets, as most part of the capital is spent on acquiring assets. Business property insurance applies for the buildings, assets, equipment, stock and real estate property. In case of theft or damage to the property due to accidents, natural disasters or any other unexpected events, this insurance provides compensation for the lost property. The amount of coverage can be decided by considering the size of the business, the value of stock and equipment in the business and location of the business. Apart from the basic property insurance, some insurance companies provide additional property insurance, which includes undamaged stock protection, computer virus protection, off-premises property protection, data or records protection and intangible coverage. As soon as the company is established, the owner should evaluate the value of the assets and should apply for suitable business property insurance plans.

Health insurance
Health insurance for a business is an important possession. Health insurance covers the health of all workers in the business along with the business owner. It generally provides regular medical checkups and various health and medical benefits. In case of a startup company, having a health insurance for the employees reduces the absenteeism in employees and increases productivity, which is very crucial at the early stages of development of the company. It also helps to create the sense of belonging to the company in employees and also makes them feel secured, thus making the employees abide by the company.

General liability insurance
Legal cases and business activities are inseparable. General liability insurance is must for a business, which deals with third parties. This insurance helps in the cases of legal claims that arise due to the damage or loss of third-party property, injury or loss of life in the office premises or at the customers' premises due to the negligence of the company or its employees. In all the above instances the affected party can sue the company or its employees for the loss. In those situations a general liability insurance covers expenses related to property damage, bodily injury, medical expenses, cost of defending law suits and settlement of judgments and bonds. Since, startup companies have little experience in this regard, it would be sensible for the company to go for the general liability insurance.

Business interruption insurance
A startup company has to prepare itself for possibility of any type of peril. There are chances of business functions getting interrupted or temporarily closed due to unexpected accidents or catastrophes, which may include natural disasters such as floods, earthquakes, crime, fire, tornado's, etc. In such cases, all the earnings and profits that are generated due to the closure of business is covered by business interruption insurance policy. This policy supports the business till it settles well after reopening of the business.

Workers' compensation insurance
Workers' compensation insurance is applicable in cases where the employees of a company get injured or lose their life in the company premises or while working for the company in any other location. In these cases the company is responsible for the damage caused and should pay for the medical expenses, rehabilitation expenses or lost wages. The workers' compensation insurance plan covers all the above expenses. As it is very essential for a company to take care of its workforce, this kind of insurance plan, serves the purpose and helps to maintain the functioning of business in long run, especially for a startup company. In some states, this insurance policy is obligatory to start the business.

Errors and omissions
This insurance policy provides coverage for the expenses incurred due to malpractices, errors and negligence by the company in serving the customers. As a newly started business has high chances of performing errors, this kind of insurance will be very much helpful in coping up with the expenses. Professionals such as doctors, architects, attorneys, accountants, third-party administrators, quality control workers, real estate agents and brokers etc. are highly recommended to carry this insurance as they are more prone to professional errors or mistakes.

All the above mentioned insurance policies are very much crucial for startup businesses to survive and sustain. As the startups have high chances of being exposed to unexpected risks, these insurance policies help them prepare for it, ensuring smooth running of business.

Keystone Insurance Group is Ireland's premier supplier of public liability insurance and business insurance solutions to Irish industry. We offer a broad range of builders insurance, construction insurance, and business liability insurance products. Our public liability insurance Ireland and business insurance Ireland products offer great value to contractors and general business customers. Our experienced and professional team quickly arranges quotes for all classes of business insurance.

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