Is Your Startup Business Going to Need Business Insurance?

Does a startup business require business insurance? In short, yes, but the extent of your necessary insurance depends on what you happen to be starting up, and just how it's going to be started up.

For the Public

Public liability insurance is mandatory if you should have a physical space that will be visited by clients or customers, but of course, this might not be the case when your startup is in its infancy. Your product might not require a physical location to be established, and public liability insurance can be obtained at a later stage if traditional business premises become a necessary part of your startup's growth. Be mindful that any form of physical interaction with customers will require public liability insurance, even if it's a temporary popup shop or a kiosk, although this insurance might be arranged by the space hosting the popup shop or kiosk (but be sure to query this).

For Your Product

Product insurance protects you in the event that there's a problem with the product that you're actually selling. This might be insurance against a customer accidentally injuring themselves, others, or their property while using the product. It's even necessary when the product in question might not even exist in the physical sense, such as app you've developed, in the unlikely event that your product damages or corrupts the customer's hardware. Businesses that operate online should also have specific liability insurance that protects you from cyber attacks which might result in your data (and even your product) becoming compromised.

For Your Property

In its early days, your startup will probably be operated from your home, and this might be a permanent arrangement. Your existing home and contents policy might provide ample protection in the event of loss or damage to any equipment used to operate your business, but do not assume that you have full coverage. Additional coverage pertaining to a home-based business might be required, and a typical consumer policy might not be sufficient. You should also opt for personal injury insurance, in case you suffer an injury or be affected by an illness which prevents you from working, as you will not have the option for traditional sick leave when establishing your own startup. 

A startup might be a different model than what was once considered to be the traditional way to start a business. But this doesn't mean that you don't need comprehensive insurance to protect your fledgling endeavor. For more information, contact an insurance broker, such as the experts at Austwide Insurance Brokers.