Types of Insurance for Startups to Consider

Business Insurance Options from The Startup Garage
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Small businesses are exposed to various risks. Many small businesses are in the form of sole proprietorship and partnership. This largely increases the cost the owners have to take when accidents happen. Therefore, before a small business is launched, its owner should minimize the risk by covering his/her enterprise with insurance, and he/she should consider the following insurance. With most startups, budgets are tight, and the risk of an accident can vary. Weigh the costs and benefits with a lawyer and insurance agent when making this decision.

Business Liability Insurance. It is an insurance that protects a business owner when he/she gets into a lawsuit or a third-party claim, and it also covers the legal costs. So, when your business is sued for personal injury or property damage, business liability insurance can protect your business and you from financial ruin. Business liability insurance includes mainly three forms: general liability insurance, professional liability insurance, and product liability insurance.

Commercial Property Insurance. It is an insurance that covers things related to the loss and damage of commercial property caused by events such as fire, natural disasters, and vandalism. If your business is in an unfriendly neighborhood or a place that is not far away from natural disasters, you might need to consider this type of insurance.

Business Disability Insurance. It is hard to imagine when you are running the majority of your business operations, and you have to stop working due to sudden injury or health issue. These unfortunate things could cause devastating effects on both your personal life and your business. At this hard time, business disable insurance can replace your income in the event of accident and health issue.

One should never expect that accidents could never happen to them. In fact, small businesses nowadays are exposed to more and more risks. Even a seemingly small accident can bring major change to your business. Fortunately, most of these risks are foreseeable and are covered by todays insurance. As a sophisticated entrepreneur, one should always think ahead to mitigate the risks, and some of these types of insurance may be an effective way to do so.

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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.