The 5 Insurance Products Essential for Startups
When it comes to growing your business, it is essential that you have the right cover in place. Simply having insurance is not enough. As your specific needs and requirements will be determined by what your company does – and how many employees it has – it is always crucial to ensure you have the best advice and guidance possible.
Insurance products do tend to vary significantly. While you can get your hands on information relating to the top 10 life insurance companies pretty easily, getting a tailored plan for your business takes a little more effort.
Employment liability insurance
Perhaps the most well-known of employment-related insurances, employment liability insurance is essential to ensure that defense expenses are covered by an insurer. This type of insurance is generally built into other insurance products or packages, and can offer peace of mind to any employer when something such as a discrimination claim is lodged. This insurance is crucial to any start-up with aims of hiring the most promising workers.
Comprehensive general liability (CGL) insurance
This type of insurance covers instances when a claim is made in regards to third-party bodily injury, personal property, advertising injury, or damage to personal property. The benefits to having this insurance are vast: the policy generally allows for you to select your own counsel, and this is paid for by the insurer.
CGL policies – like all insurance products – carry exclusions and limitations. Coverage is generally for $l million+, but CGL is becoming as close to an essential policy for new businesses as any out there.
Directors and officers (D&O) liability insurance
When it comes to the result of business decisions made by directors and officers, it is essential that there is cover in place which can protect them from any negative consequences of their business judgements. There are three distinctive sections which all cover different aspects of scenarios which could come to happen.
Not all businesses opt for the three aspects of D&O coverage.
First-party property insurance
The most common policy of this type covers the physical damage to all company property, including equipment. This is essential for any company which is finding its feet in the business world, just as it is for large companies with a number of locations under its belt. While there are a number of scenarios protected under the policy guidelines typically provided by insurance companies, there are also exclusions and limitations applicable to most.
Cyber and media Insurance
You can imagine that this insurance is beginning to become even more in-demand these days, given the extensive damage hackers and fraudsters can inflict on a business. Additionally, there is a distinction between the defense and indemnity these policies offer, which adapts to the growing complications associated with cybercrime. Crisis management assistance is also built in to many policies being sold today.
Having adequate insurance in place does not rule out any instances or scenarios which could affect your firm. Being protected in the modern age is essential for any business, however, so ensure you always take necessary precautions.