Protect Your Dream: Essential Insurance for Startups.

Starting a new business is exciting, but what happens when the unexpected strikes? Protecting your new company from financial fallout is crucial, and the right insurance is a vital investment.

Who Needs Startup Insurance?

If you're launching a new company, the answer is simple: you do. Startup insurance protects the business you're building and prevents you from incurring massive debt due to unexpected accidents, lawsuits, or disasters.

Why It's Essential

The right policy helps cover:

• Lawsuits over employee injuries or mistakes you make.

• The cost of repairing damaged property.

• Injuries that happen on your business premises.

• Cyberattack costs, including credit monitoring for clients.

Key Types of Business Insurance

To get started, new businesses typically need to consider these core policies:

• General Liability Insurance: This is foundational coverage. It protects you from legal responsibility for bodily injury or property damage to a third party. It also covers claims of "advertising injury" like libel or slander.

• Commercial Property Insurance: Protects your business's physical assets—the building, inventory, furniture, and equipment—from perils like fire, theft, and storms.

• Business Owners' Policy (BOP): Often the most affordable option, a BOP bundles General Liability, Commercial Property, and Business Interruption insurance.

• Business Interruption Insurance: If damage forces your business to temporarily shut down, this covers operating costs (like payroll, lease payments) and a portion of lost income while you rebuild.

Specialized Coverage to Consider

Depending on your industry and employees, you may also need:

• Professional Liability Insurance (Errors & Omissions): Covers legal claims arising from professional negligence, errors, or unsatisfactory work. Essential for service-based businesses (e.g., consultants, architects, lawyers).

• Workers' Compensation Insurance: Covers medical treatment and lost wages for employees injured or made ill due to their job. It's legally required in most states as soon as you hire your first employee.

• Cyber Liability Insurance: Protects against the costs associated with data breaches, viruses, and cyberattacks, including client notification and repairing your business's reputation.

• Commercial Auto Insurance: Required if vehicles are owned by the business or frequently used for business purposes (e.g., deliveries).

How Much Does Startup Insurance Cost?

Premiums can range from a few hundred dollars to thousands annually. Your cost depends on:

• The type and limit of coverage you choose.

• Your business's size, location, and industry.

• The number of employees.

We recommend working with an experienced insurance agent who understands startup risks. We can help you determine the exact policies you need, find the best costs, and tailor a plan to your unique business.

Ready to secure your startup? Contact Tans Agency today for a free, no-obligation quote.