07 Aug How to Navigate the Complex World of Insurance for Startups

Starting up a business is always a fraught, yet exciting time. You have to put all of the pieces in place for founding your dream company, from choosing a location to ordering signage to hiring employees. All of these tasks can make it easy to forget one of the most important things: insurance. Yes, even your new business needs to have the right protections in place, so be sure to make room in your budget for these premiums.

Of course, your industry and niche will dictate which policies you need, but here’s a quick breakdown of the most typical types of insurance policies for startups.

BOP Insurance

Also known as a business owner’s policy or BOP for short, this insurance typically consists of two different policies that almost all startups and other businesses need. These policies include general liability, which covers incidents that take place on your company’s property that you might be held liable for, as well as business property insurance. The latter provides coverage should something, like a fire, burst pipe, or other storm damage happen to your company’s building.

Specialty Insurance for Buildings

If your startup is located in an area that’s prone to hurricane or flood damage, then you’ll need to consider getting one or both of these special policies. Remember that flood damage from a burst pipe will usually be covered by your standard business property insurance, but the damage from flooding caused by heavy storms, overflowing rivers and reservoirs, and more won’t be. You’ll need flood insurance for that. The same is true of hurricane damage. You’ll need a hurricane insurance policy to make sure that the damage caused by these windstorms is covered.

Business Interruption Insurance

What happens when your company’s building is out of commission for a period of time? For example, if a flood damages your warehouse and manufacturing center, leaving you with only functional offices, what should you do? The cost of temporarily relocating those parts of the business for the repair period could be devastating for your startup. This is where business interruption insurance comes into play, as it covers things like salaries, the rental of a new location, and more while you get back up and running again.

Professional Liability Insurance

Depending on the type of business that your startup is, professional liability insurance may be a good option. If your business does anything for the public, like plan weddings, bake cakes, handle taxes, or even offer other accounting or legal services, then you’ll need one of these policies. They keep you from having to pay for legal costs and other things out of pocket should something go wrong, and your company ends up getting sued.

Need Insurance for Your Startup?

If you need insurance for your brand-new company or are wondering if you have enough coverage on your existing policies, then reach out to Spivey Insurance. Our experienced agents can help you make the best insurance decisions for your business.