Do Start-Ups Require Business Insurance?

Do Start-Ups Require Business Insurance?

As you’re launching your company, there are numerous tasks lined up for your action and purchasing insurance is quite possibly nowhere near the top of the list. We’re here to tell you why that has to change. 

Operating in the global business environment today, risks are present in almost every situation no matter the industry you’re in. Take employee considerations, cybersecurity, and work safety issues into account and you’ll see why getting business insurance is a must-have, instead of a should-have. 

Business insurance does more than just shield your start-up from any financial, set-up, or commercial issues – it also protects the skeleton of your business, employees and intellectual property. Today, seasoned entrepreneurs are seeing the value of what a comprehensive business insurance plan can do for the company. 

3 reasons to prioritise business insurance 

1. It acts as a safety net

Don’t put all your eggs in one basket – most business owners with start-ups are aware that diversifying allows you to spread your risks. Recognising that the journey forward is filled with speed bumps will enable you to forecast and prepare for any incoming challenges. Likewise, business insurance serves as a safety net for problems that you otherwise don’t have the capacity to fund for. 

While it seems like there are plenty of other tasks that are competing for your business funds, getting your company insured is the best way to prevent any unforeseen loss. As the frequency of problems increases, thinking that your business will be lucky enough to evade is a risky attitude to adopt. Consider events that are beyond your control like natural disasters and thefts (both in-person and cyber). 

A business insurance policy will financially shield your start-up from unpredictable losses, allowing you to continue without worrying incessantly about issues beyond your control. 

2. There are more options today

With limited funds and a never-ending list of actionable items for your start-up’s foray into the commercial world, we understand that business insurance is something you’d prefer postponing. Aside from costs, start-ups operate differently from multinational companies (MNCs), have different priorities, and probably do not need all types of coverage. 

Fortunately, thanks to technology, underwriting processes have gotten a lot faster, which gives insurance providers the agency to custom-build policies and lower costs in the process. The availability of business insurance policies suited to small and large companies today negate the concern of not finding one that fits just right! 

3. It improves your hiring efforts 

Needless to say, your employees are the lifesource of your company. From incentivising to commensurable benefits, employees need to be rewarded and recognised for their contributions to the company. To access the competitive talent pool, start-ups need to begin offering health insurance and attractive salaries to their employees. 

A business insurance plan that covers employee benefits packages can help you do that. Not only does it protect the interests of your employees, it drastically reduces turnover rates and improves your hiring efforts. 

3 important business insurance needs to consider 

1. Directors’ & Officers’ Insurance

D&O insurance policies protect business owners against claims or investigations made against them while in charge. Discrimination, wrongful dismissal, and other HR issues are at play for this plan. 

2. Professional Indemnity Insurance 

Most companies today are in the business of offering consultative services to clients. Having professional indemnity insurance can cover you in the event that your start-up faces legal claims arising from negligent services. 

3. Cybersecurity/Data Protection Insurance 

It’s hard to name one function or company that has stuck by paper-and-pen methods. With dominant technology use everyday, it’s vital that your start-up takes cybersecurity seriously. By having ownership over people’s data, preventing data leaks and cyber attacks are crucial to long-term security and safety. On top of compromising personal data, you risk losing your company’s progress. A cyber insurance plan can help you avoid that. 

4. Employee Benefits Plan 

From personal medical to business travel and group accident plans, employee benefits packages are a subset of their own. An integral part of hiring and retaining employees, develop your employee benefits plan as you grow your business. We understand that costs may be a concern – for starters, look into insuring your employees medically. 

Read more on employee benefits plans, developments and recommendations here

Start on the right foot 

Starting a business is exciting news. Preparing, executing, and developing your strategies, policies, and plans in advance give you the best shot at long-term success. Consult our team of experts to see how we can help you get started with small business insurance needs. 

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