Desmond Insurance Blog
As startup owners, it is essential to safeguard their company’s future. Thus, protecting your startup from the risks associated with establishing a new business becomes inevitable. And the best way to keep your startup protected is by getting business insurance.
Business insurance is an insurance policy that is tailored to the needs of startups. It can provide financial protection to your business against risks that might adversely affect your business finances. That is why today’s article will discuss three types of business insurance that can prove beneficial for your startup business.
General Liability Insurance
The first on the list will be the General Liability Insurance, which is sometimes referred to as Business Liability Insurance. It offers financial protection for your startup against liability claims on property damage and bodily injury as you go through with your regular business operation. If you do not have this coverage, you will be forced to draw money from your business funds or out of your pocket to pay liability claims.
The insurance policy can cover payment for property damage or bodily injuries caused by your business operation.
For example, if your employee unintentionally damaged a client’s home’s windows and floor, General Liability Insurance can repair the windows and floor expenses.
It can also shoulder the medical costs if a client or someone visiting your business office got hurt or injured. For example, a client visiting your physical store slipped on the wet floor and injured his arm or legs. The insurance policy can pay the medical expenses in treating the client’s injuries.
The insurance policy can also cover the legal expenses in defending you against lawsuits and the settlements resulting from a court proceeding.
Product Liability Insurance
Another essential business insurance that you need is Product Liability Insurance. It can pay for the claims against your products. If you are producing and selling products or goods, this insurance policy can protect your business from lawsuits after your product caused damage to someone’s property or injured a customer.
For example, you manufacture and sell car batteries. Unfortunately, suppose one of your car batteries malfunctioned and caused damages to the client’s vehicle or injured the car driver. In that case, Product Liability Insurance can cover the expenses associated with the car damages or bodily injuries.
Business Interruption Insurance
As the name suggested, this insurance policy can protect your startup from any unforeseen events that can interrupt your business operation. It can replace the lost income due to the non-operation of the event as covered in your policy. A standard Business Interruption Insurance can pay the lost revenue due to theft, fire, and wind damage.
For example, your business office was damaged by a fire and shut down your business for several months. The insurance policy can replace the lost business income so you can pay your employees’ wages and other monthly obligations of your company.
Setting up your own company is full of challenges. In most cases, startups are operating on a limited budget and are vulnerable to events that could cripple them. Hence, startup owners must get business insurance to protect their business from these events.
At Desmond Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (859) 491-5100. You can also request a free quote by CLICKING HERE.