If your company is newly formed buying insurance might be the last thing on your mind. Getting customers, developing products, process flow, technology all are considerations before you even think about buying commercial insurance. However, startups like yours should consider risk management as a regular part of the day to day business operations. An effective business plan will have significant portions dedicated to risk management, and mitigation. This is where Commercial Insurance for Startups comes in, as one of the main ways to mitigate business risk.
Insurance as a pure risk mitigation tactic is one of the most useful and efficient ways to cover Startups from costly disruptions or lawsuits that can distract and do financial harm. As a newly formed business, a single trial can cause significant damage and put your entire business at risk.
Startup Founders Need Insurance
As a Startup business owner, you may not know exactly what type of risk exposure your business may have, that’s why it’s important to work with a Commercial Business Insurance Broker that will fully understand your business and have experience with the types of risks that your business may be exposed to over time.
A Startup may also require specialized insurance that is tailored to its business operations. For example, if your Startup sells products online a Cyber Liability Coverage will be necessary since online Payment Transactions is a natural part your business operations. The reputational risk and potential for legal action if your customers’ data is hacked is quite severe.
Your Insurance Broker will know how much Cyber Liability Insurance your Startup requires and put together a solution that will likely include Errors & Omissions Insurance as well as Commercial General Liability. Some other add-on Coverage may be necessary, and it’s always best to get tailored advice from a Licensed Insurance Professional.
Startup Insurance doesn’t need to be complicated or expensive depending on your business operations. It’s best to be as clear and honest about your business operations so that you can get the right insurance policy at the best price possible. Technology Startups, in particular, will have specific insurance needs that should be addressed. Many Insurance Companies in Canada specialize in insurance for small businesses and Startups like yours.
How CoverMarket Can Help
CoverMarket helps business owners find the right business insurance coverage that is tailored to their needs. We work with Professionally Licensed Insurance Professionals across Canada. Helping identify risks, developing risk mitigation strategies and providing multiple small business insurance quotes from major Canadian and International Insurance Companies.