Starting a new business can be a daunting endeavor but there are ways in which you can mitigate your risk at the very beginning. Taking out the correct insurance policies will provide peace of mind for new business owners, ensuring that they can focus on the things that matter in a business start-up as opposed to fixating on the things that could go wrong. These are the top 5 insurances that new business owners should consider.
1. Data Breach Insurance
Even the world’s best technologies have been through stages where they are vulnerable to hackers and breaches of security. If your start-up is in the field of technology or holds sensitive customer information, there is a need for a secure storage solution, but these do not always hold your important information as securely as you might want. Data breach insurance is there to protect the business in the event that a leak occurs. This insurance is designed to assist companies that have experienced a breach of internet security to notify the affected parties, create a PR campaign to address the issue, and provide identity theft monitoring services.
2. Worker’s Comp Insurance
Worker’s compensation is arguably the most important insurance that any business can have. No matter whether you are starting out with 1 or 100 employees, as a business owner, it is your duty to protect these employees and ensure that both they and your business are covered in the event of an accident or injury on the job. Worker’s compensation insurance ensures that all medical expenses relating to an injury sustained within the regular scope of work are covered on behalf of the employee and helps the business to remain protected from any further litigation.
3. Auto Insurance
If you have purchased vehicles as a part of your business setup, then auto insurance should be at the top of your list of priorities. Car insurance for a business is designed, not only to protect the vehicle and the driver but also to reduce the liability on behalf of the company in the case of an accident. You can choose from a range of car insurance options for your company vehicles that offer varying degrees of cover from 3rd party coverage to complete and comprehensive insurance plans.
4. Public Liability Insurance
Public or general liability insurance is of great value to new businesses as it is designed to limit the company’s liability in a range of circumstances. Public liability insurance protects your business from litigation by external parties as a result of wrongdoing on the part of the business. As a new business, mistakes are sometimes inevitable which is why general liability insurance is such an important one for start-ups.
5. Business Income Insurance
If you are unlucky enough to experience an accident in the early stages of operations, you run the risk of losing everything you have put into your business due to the inability to operate. Business income insurance provides the peace of mind that no matter what circumstances arise, your business will remain protected from loss of income as a direct result.