Startup Insurance 101: What You Need to Know to Get Started
As a startup owner, you want to make sure that your assets are safe at all times. Therefore, it is important that you understand both the basics of startup insurance as well as some more advanced considerations.
To help you out, your trusted insurance brokers in Lethbridge share what you need to know about insurance for startups.
We hope that after reading this article, you will feel more empowered and informed when it comes to insurance and risk management:
Why Startups Need Insurance
For a startup to be successful and in business for the long haul, it must protect itself from the risk of company-defining events such as lawsuits, cyber-attacks, liability, and more. Before we dive into the details of the most common startup insurance policies, let’s discuss why insurance is important for your startup.
Protect Your Patents & Copyright
As your startup begins to grow and produce products or services that are unique, you want to make sure that you protect your IP assets. This process can be lengthy, especially with the new patenting process. However, it is vital to remember that all of your company’s intellectual property (IP) is of importance.
IP is widely considered to be the driving force of any small business, and it is the IP that is often the most valuable of an organization. If your startup is a tech startup, IP is the software and patents that you have. If your startup is a creative agency, IP can be the creative work that you have, including logos and advertising campaigns.
Startup insurance can protect your IP assets and make sure that they’re always there for you.
Protect Your R&D From Being Copied
R&D is another major expense that startups must face. You may be working on developing a product or service that has never existed before. While this may be an exciting time, you should take caution to protect your ideas.
Your R&D can be copied by competitors or stolen through a single data breach. What’s worse, many companies now outsource their R&D to other countries where there are fewer laws regarding the protection of intellectual property. The only way to guarantee you receive the same benefits from your R&D as your competition is to invest in startup insurance.
The frequency of cyber-attacks is growing every year and there are many different ways that your startup assets can be stolen as a result. If the cyber-attack is serious enough, you may find yourself unable to pay your employees or get instant cash to help your company.
What Insurance Policies Do Most Startups Need?
The following are the most common startup insurance policies and the tips you need to know about each one:
General Liability Insurance
General liability insurance helps protect your startup from certain liabilities. While you may be able to reduce or avoid certain risks, there are some risks you can’t avoid.
General liability insurance will help protect your startup from a wide range of expenses so that your business won’t go under. The cost of general liability insurance frequently depends on the type of business you have.
Cyber insurance is the newest form of insurance in the startup insurance world. As more and more small businesses are getting their products and services stolen, it is vital that they take action to avoid serious setbacks.
Cyber insurance helps protect your startup from cyber-attacks. Rather than simply compensating you for lost data, cyber insurance will protect your startup from your losses due to data breaches, ransomware attacks, and more.
Workers’ Compensation Insurance
Workers’ compensation insurance protects employees in case of a workplace injury. No one wants to hurt their employees, but it’s a risk that every company will have to face.
Workers’ compensation insurance helps make sure that your employees are taken care of in case of an injury.
Property insurance protects your assets from a wide range of losses or damages. Whether your startup is taking risks through high-tech R&D or developing a new product, your property insurance will help protect your physical assets.
It’s time to take a risk-assessment to see if your startup needs insurance. There is a lot to consider, but being properly insured can help you grow your business and build a more stable business foundation. A seasoned insurance broker in Lethbridge can help you determine the right kind of insurance for your startup.
Kirkham Insurance is one of the most trusted Lethbridge insurance companies. We offer an array of insurance products, from business to life insurance, and more. Get in touch with us to know more about your options!