When it comes to insurance for your startup company, obtaining this will help you protect your employees, growth, and ultimately your company itself. However, it can be hard to decide exactly which type of insurance your company actually needs, as some are required by investors while others are required by law.
Some of the most important benefits that many startup companies can take advantage of thanks to the right insurance coverage include the following:
*Attracting investors.
*Keeping customers happy.
*Hiring top talent.
*Scaling.
*Disrupting.
Here are three of the most important types of insurance for startup businesses to always consider.
Workers Compensation
One of the most important types of insurance is workers compensation and employers liability. This helps to provide a legally required coverage that protects employees in the event that they get sick or physically injured while they are working. There are different requirements for this depending on the state. It’s important to note that this is required by the government and that fines can be imposed on companies that fail to comply with their state’s laws regarding workers compensation.
General Liability
Another important type of insurance is that of general liability and property, which protects a company from some of the more fundamental risks involved with running a startup business. These include damage to the property of a third party, slip and fall claims, product liability claims, and more. Generally, this type of coverage is required in many types of commercial contracts such as vendor agreements and office leases.
Employment Practices Liability
Another important type of insurance for any startup business to consider is employment practices liability, which is designed to protect a company and members of management in the form of paying costs of defending against specific suits filed by employees and investigations from government agencies. Some of the most common types of claims include wrongful termination, retaliation, allegations of harassment, and discrimination. If either you or your company ends up getting named in such a claim, your insurance company would not only defend you, but they would also pay the settlement or judgment against you as well.
Thank you for visiting the Hollister Legal blog, an Austin startup attorney. If you need help navigation the startup world contact our office today.