Business Insurance for Startups
Business insurance is critical for startups as it provides essential protection against various risks that could otherwise jeopardize their operations and financial stability.
Recommended types of business insurance for startups
Having the right commercial insurance helps secure the future of your company. Here’s an overview of the most important policies for startups.
General Liability Insurance
For liability protection against accident, injury, and property damage lawsuits.
Professional liability (errors and omissions) insurance: To cover client lawsuits alleging mistakes, oversights, missed deadlines, mismanaged projects, negligence, or shoddy, incorrect, or incomplete work.
Cyber Liability Insurance
Cyber liability insurance is a type of insurance coverage designed to protect businesses from risks associated with cyber threats and data breaches. It provides financial protection against the costs and liabilities that may arise from a cyber incident.
Errors and Omissions (E&O) Insurance
Errors and Omissions (E&O) insurance, also known as Professional Liability insurance, is particularly crucial for technology companies. It protects against claims of negligence, inadequate work, or failure to perform professional services.
Directors and Officers Insurance
Directors and Officers (D&O) insurance is a type of liability insurance that provides financial protection to directors and officers of the company in case they are sued including lawsuits from dissatisfied investors for alleged wrongful acts in their roles.
Workers’ Comp Insurance
Most states require startups with employees to purchase workers’ compensation insurance.
It provides essential coverage for employees who suffer work-related injuries or illnesses.
Commercial Auto Insurance
This policy helps pay for accidents involving a vehicle owned by your startup. State laws usually require it for business-owned vehicles.
Business Owner’s Policy
A BOP combines two types of insurance at a discount: general liability coverage and commercial property insurance. Small low-risk startups are typically eligible.
Professional Liability Insurance
This policy also known as Errors and Omissions Insurance(E&O) is a specialized type of insurance that provides financial protection against claims of negligence, errors, or omissions in the professional services or advice provided by the company.
Employment Practices Liability Insurance
Employment Practices Liability Insurance (EPLI) provides crucial coverage against claims made by employees alleging wrongful employment practices such as harassment, wrongful termination, discrimination, or similar employment issues.
