How Much Commercial Insurance Do You Need for Your Startup?

Every startup business needs insurance to cover the unforeseen and the unexpected. As you prepare to launch your business, it’s important to know how much commercial insurance you need to keep your fledgling business protected against a variety of known risks and unforeseen events. The helpful agents at Shults Insurance Agency can help you choose the right policy that best fits your business needs.

Factors to Consider

No two businesses are alike and neither are their insurance needs. A typical startup’s insurance needs will cover the basics, from general liability insurance to cover bodily injury, to coverages for data breaches. Here are some other factors to consider when choosing your insurance coverage:

  • Business type – Whether you’re starting a food truck or a food delivery app, the type of startup will dictate how much commercial insurance your business needs.
  • Employee size – Unless you’re a sole proprietor, you’ll need worker’s compensation coverage to protect your team against on-the-job injuries.
  • Property and assets – The more properties and assets your startup owns, the more coverage you’ll need to protect them against damage and loss.
  • Company vehicles – If your startup involves corporate vehicle ownership, you’ll need commercial auto insurance coverage.
  • Errors and omissions – E&O coverage goes beyond what general liability offers by covering intellectual property and other intangible losses.
  • State-mandated requirements – Certain businesses require mandatory insurance coverage.

Keep in mind that most small businesses don’t grow into major commercial successes overnight. Your startup’s liability coverage should grow along with your business to keep costs down and provide the best possible match for its needs. Even if you’re still running your startup out of your home’s garage, you’ll still need commercial insurance to cover certain risks that your homeowner’s insurance policy won’t touch.

If your business needs insurance coverage, you can always turn to Shults Insurance Agency for help. Contact us today to get started.