Managing risk is one of the most important skills for an entrepreneur, because you can’t take advantage of opportunities reliably if you don’t have plans for dealing with problems when they pop up. You can’t necessarily predict every emergency, but you can plan for common mishaps like property liability issues. It’s important to get startup coverage before you start exposing your business or your employees to situations where you might have liability.
Your Business Operator’s Policy
Most of the time, when you cover your startup you can get the basic features you need from an insurer with a simple BOP. The standard for this policy is combined coverage for both general liability and for your commercial property. That way, you have a hedge against risks to your equipment and against the risk of your employees or customers being injured in a way the company is liable for.
When you insure your startup, it’s crucial you also maintain awareness of your other kinds of exposure. If you do need additional policies or riders, you can usually get help with them from your insurer without having to buy a second policy elsewhere.
Insurance Beyond the BOP
What kinds of extra insurance might you need? It depends on what your company does. General liability covers a lot, but if you operate company-owned vehicles, you’ll probably need additional policies in case of a traffic accident. That’s one of the more common examples, but insurance that covers industry-specific circumstances can be quite common for many types of businesses:
- Gas stations
- Mining and resource extraction companies
- Restaurants
- Freight and transport companies
These are just a few examples. Finding the right insurance for startups in these areas means asking the right questions when you call an agent to cover your startup. Even when insurers can’t provide every type of insurance you need in one package, they often have affiliates that can fill in the industry-specific gaps.
Amount of Coverage
In addition to knowing your insurance types, you need to know how much coverage you should take out when you get a quote. The insurance agent should be able to help with a few questions about the value of your property and the kinds of work you do, because that helps determine your risks. Beyond that, you need to know how much you can afford to spend and what the additional coverage gives you in terms of risk management. It’s possible to become over-insured, and then the overhead can eat into your working capital enough to affect your early growth.
Insurance can vary a lot from business to business, because every company has a unique set of risks dictated by its size and niche. Don’t let your company coast by on guesswork when it comes to risk management. Find an insurance solution that gives you startup coverage and supports you as you grow, so you can rest assured you are protected in the event something goes wrong. When you’ve got the right coverage, it’s easier to focus on your core business operations. Contact an agent today to get a quote so you can go to work tomorrow knowing your startup is covered.
