4 Tips on How to Get the Right Insurance for Your Startup
If you are just entering the world of business and are in need of capital, then founding your own startup is broadly considered the most prudent choice. You are tasked with pitching the idea to the right people and you remain in charge of running the day-to-day business – which is essentially the most creative part. Yet startups are also notoriously frail: there will be hurdles along the way, and it is important to prepare for them by looking into getting the right kind of insurance for your company. But how can you decide on what is the best option for your startup?
Be Honest about Your Needs – and Your Budget
Getting a startup going can be a costly procedure but, in the long run, it could yield a lot of money for your investors. Many successful companies took their first steps as startups, including Airbnb, Uber, and Slack – and they are now worth millions for the people who believed in them. In order to maintain a good relationship with your investors, it is crucial to be honest about your company’s needs. It is important to explain how taking out insurance will affect your budget but also why it is essential and the potential costs it could protect you against. This way, you come off as reliable and direct, and everyone can be sure there will be no surprises down the path.
Identify Your Liabilities
There is one practical question that every business owner looking to get insurance should be able to answer: what are your top vulnerabilities? The answer will change according to the type of business you are into, your location, and the number of people you deal with. If you provide a lot of services on-site and on client premises, it is important to be insured against accidents to their property, while, if most of your employees need to work outdoors, it is important to consider your extended responsibilities when it comes to their safety.
Research Your Options
Before deciding on a specific plan, you need to make sure that it covers everything you need. General liability insurance will cover most aspects of your work, like physical injuries to third parties, non-tangible personal injury that might incur when someone sues you for defamation or for accidentally violating copyright laws, even property damage to a third party. Then, there are extras: if your startup needs company vehicles, for instance, it is important to also take out vehicle insurance.
Don’t Forget Cyberspace
The internet has revolutionized how we do business – but it has also changed the way a company can be held liable. Different rules can apply to businesses that sell products online, while any kind of digital activity where you interact with clients might present you with more liabilities. This includes liability for privacy and data protection violations, as the new strict EU GDPR rules also apply to US companies supplying services to EU-based customers.
Running a startup is all about effectiveness and profit: making sure that you invest in an insurance plan that is tailored to your needs can save you both time and money down the road when you actually need it.