Insurance for Startups
Why do startup businesses need adequate insurance protections?
While it might not be top of your to-do list, having the right insurance in place could be the difference between the success and failure of your startup business. If you’re not insured and a claim seeking damages is made against you, ask whether your cash flow is sufficient for company to survive?
Why every startup should consider business insurance?
With the right business insurance in place, your startup can protect your buildings, contents, equipment, stock, data, revenue, employees, customers, and your reputation, leaving you free to concentrate on successfully running your business. Also, don't forget your insurance premiums are tax-deductible.
How much can startup business insurance cost?
The cost of insurance for startups varies depending on what you do, and what cover you require. There is no one-size-fits-all, your business insurance should reflect your unique set of circumstances.
For a small startup business with a couple of employees, meeting your legal obligations and purchasing employers liability insurance can cost as little as £80 per year or £6.67 per month.
As an insurance broker we can assess your needs and find the insurance that matches those needs, while cost is a factor it is important to consider the value of the cover offered is just as important.
How start-up insurance can help company growth?
Having the right start-up insurance in place to protect your business and your cash flow is essential for startup businesses and it also demonstrates to new clients and investors that you’re serious about what you do. Likewise staff, directors and potential investors will be reassured that you have a cover in place to protect the activities of the business. In an increasingly litigious society protecting your company with covers such as professional indemnity insurance, has never been more important.
Promotes confidence
Having adequate protections in place promotes confidence in the business that you have the financial resources at your disposal should the worst happen.
Contractual obligations
It's common practice for counter-parties to request minimum amounts of insurance cover when negotiating contracts for goods and services.
Find startup business insurance that is tailored to the specific needs of your industry
Business insurance is an important consideration for any startup, talk to a broker today about your requirements.Will our business insurance evolve as our startup grows?
Size of the business
As your business grows so will your insurance requirements. Additional covers are typically purchased along with higher coverage limits to ensure the balance sheet is adequately protected.
New products or services
If you pivot into offering different services or different industries, it is vitally important that you keep your insurance broker up to date to ensure your current business insurance is suitable.
Emerging risks
The environment in which you operate continues to change, therefore consideration should be taken to emerging risks. Every business should consider their insurance program each year to ensure you are protected from new exposures.
When is the best time to get business insurance?
Early consideration
While Employers Liability is a legal requirement, other types of insurance are optional, however, having a business insurance package is vital to protect your business, even if you haven’t taken on your first employee and could be the difference between success and failure if the worst happens and something goes wrong in the early stages.
How do insurers calculate your startup insurance premium?
If your business does not have a trading history, it is prudent to offer conservative projections for your first year's revenue. Given insurers will base their premium calculations from these projections.
It's common for startup businesses to identify overly ambious revenue projections, however it is wise to stand back and consider what is reasonable with so many unknown factors that could hamper your targets.
The industry you work, the type of services you provide, annual revenue and employee numbers, alongside other individual business differences will all factor into insurers calculations for insurance premium.
What are the largest insurable risks facing startup companies?
The exposure to risks as a startup might appear smaller compared with large corporates, but an unfortunate accident can spell the end for a startup business. Loosing valuable assets or third parties taking seeking damages against the company can bring unmanageable costs, before the business really has a chance. If you require insurance for your software company please follow the link.
Compensation claims
These occur when a third-party demands damages from your business and takes your to court to see compensation for a loss they have suffered.
Financial loss
If your business suffers damage, destruction or theft of property you own, how easily can your startup replace those items that are essential to trade?
Lack of knowledge
Some insurance policies will contain provision for mitigation services such as, cyber incident response whereby specialist are employed to limit the damage.