Starting a business comes with unavoidable risk and responsibility. And where there is risk, insurance surely follows. It’s an industry that has a foothold in many aspects of life, from the cars we drive to our homes and our businesses. While it’s another expense to add to the profit and loss sheet, taking out the right kind of insurance for your business is absolutely critical. Even more so for startups because many typically lack financial security and stability in the first few years. In this short guide, we’ll outline the most common types of business insurance that startups take out from the get-go.

most common types of insurance for startups

Public Liability Insurance

If your business activity interacts with or operates around members of the public at any time, then you should be looking to invest in public liability insurance. This can cover your business if a member of the public makes a claim as a result of harm or injury because of your business operations. It may or not even be your business’s fault, but a claim can still come your way and this insurance could help to cover the costs that may be financially crippling for a startup.

It also covers your business in the event of property damage and a subsequent claim that may come from a home or building owner. Builders’ insurance contains this type of cover because damage can easily occur whilst working in or on someone’s property. If you’re at risk of injuring a member of the public or damaging someone’s property, then public liability insurance is a must for your startup.

Professional Indemnity Insurance

Any startups that are providing legal, financial or any other type of professional advice are likely to need professional indemnity insurance. This may cover your business if one of your clients makes a claim against you for providing wrong or misleading professional advice which negatively impacts their business or causes loss. Sometimes it may be a genuine mistake that leads to such an occurrence, but a client will likely want compensation if your advice or professional service had a detrimental effect on their business proceedings.

Employers’ Liability Insurance

Once your startup begins to gain traction and is growing at a sustainable rate, you will likely need to bring people on board to support this growth. The moment you start employing staff other than yourself, you must have employers’ liability insurance by law or else you could be fined. This cover protects your business in case one of your employees falls ill or suffers an injury as a direct result of their job. If you’re beginning to consider hiring your first employees then you will have to factor this into your decision-making.            

Premises Insurance

Much like home and contents insurance, business premises are at risk of theft, fire and flooding as well as many other associated factors. Commercial building and contents insurance can cover the cost of any loss or damages, helping your business to get back on its feet after an emergency or unexpected event. Some providers will offer separate packages for building and contents cover, but some will offer a complete package.

Self-Employed Insurance

Some people consider their startups as self-employment or sole trading until the operations are mature enough to register the business as a separate entity. In these cases, self-employed insurance can provide a tailored approach to business cover. You can usually customise and bundle your insurance packages to cover the relevant areas of your operation. However, you should be aware that if you are based at your residential property – your business equipment and contents may not be insured by your home policy, so you might need dedicated cover for any equipment you’ve invested in for your startup.

TECH NEWS RELATED

Gift Guide: More than 20 STEM gift ideas to inspire kids to code

All aboard the learn-to-code train! As another holiday season looms and kids everywhere start clamouring for shiny stuff, we’ve got you covered with a bumper edition of our annual STEM gift guide. This year’s guide is packed with more than 20 ideas to engage toddlers, excite tweens and inspire teens ...

View more: Gift Guide: More than 20 STEM gift ideas to inspire kids to code

Meet the startups competing at TC Sessions: Space

We’re over the moon to announce the three early-stage startups that will take the stage and go head-to-head in the pitch competition at TC Sessions: Space — next Tuesday, December 6, in Los Angeles. There’s still time to join this mission. Buy your pass right now to watch these ...

View more: Meet the startups competing at TC Sessions: Space

Third-party Twitter app makers turn their attention to Mastodon

Open source Twitter alternative Mastodon has gained a bit of attention in the wake of Elon Musk’s Twitter acquisition. Now, it’s gaining interest from third-party Twitter app developers, as well. The makers of popular Twitter clients, including Aviary and Tweetbot, have recently set their sights on building similar clients for ...

View more: Third-party Twitter app makers turn their attention to Mastodon

Autonomous driving’s blunders are good news for the climate

Not quite a decade ago, two technologies were racing toward an unseen finish line. They weren’t competing with each other — the adoption of one didn’t lock out the other. But to avoid catastrophic climate consequences, the order of the finish mattered. Autonomous vehicles had to lose, and electric ...

View more: Autonomous driving’s blunders are good news for the climate

How companies can slash ballooning SaaS costs

As inflation and general economic uncertainties spur C-suites to identify cost-cutting areas within their organizations, software-as-a-service (SaaS) spend is becoming a prime target. SaaS is obviously a broad category, covering any centrally hosted software that’s licensed on a subscription basis. But no matter the flavor, SaaS is a growing ...

View more: How companies can slash ballooning SaaS costs

Google’s new Pixel update brings new features like clear calling and Google One VPN

Google’s latest ‘feature drop’ for Pixel phones and the Pixel Watch brings features like a call quality enhancement function called “Clear Calling,” free access to Google One’s VPN service, a new privacy and security settings hub, and Fitbit sleep profiles for the Pixel Watch. Here’s the summary of all the ...

View more: Google’s new Pixel update brings new features like clear calling and Google One VPN

Operative Intelligence helps contact centers figure out what customers really need

A company may have a good contact center, but ideally they are able to help customers before they need to make a call. Operative Intelligence helps contact centers figure out what customers want more quickly, improving automated inquiries and cutting down on wait times. The Melbourne and Los Angeles-based ...

View more: Operative Intelligence helps contact centers figure out what customers really need

BrightDrop expands e-delivery van business to Canada with DHL Express

BrightDrop, General Motors’ electric delivery van subsidiary, added DHL Express Canada to its portfolio of customers, marking the company’s entrance into its first international market. BrightDrop has also started production on its Zevo 600 delivery vans (formerly called EV600) at GM’s CAMI Assembly plant in Ontario, the company said ...

View more: BrightDrop expands e-delivery van business to Canada with DHL Express

If Rowy has its way, if you can use Excel, you can build software

Confirmed: Slack CEO Stewart Butterfield stepping down in January

NEP and NCF: Tailwinds for school edtech

UPI clocks 19.65 billion transactions at Rs 32.5 trillion in Q3 2022: Worldline’s India Digital Payments Report

Thoughts on the demise of Circle’s SPAC deal

Zenly was the best social app and it will (sadly) shut down on February 3rd

Facebook to now test age verification tech on Facebook Dating in the U.S.

Which way is up? The end of free money and the importance of keeping cash on hand

Is this what good news feels like?

Check out what’s happening tomorrow at TC Sessions: Space

Twelve Labs lands $12M for AI that understands the context of videos

Loft Dynamics raises $20M to tackle pilot shortage with VR training

OTHER TECH NEWS

Top Car News Car News