Insurance for Startups – Overview
Starting a business from scratch can require a huge investment of time and effort. You may start with market research. That process allows you to determine if there is a market for your product. How many clients will buy your product, and what are they willing to pay for it?
If your market research reveals a strong need for your product or service, the next step is to create a business plan. Your plan may be 50 pages long or more. Your plan will document the market for your product or service, how you will deliver the product or service to clients, and what you’ll charge.
The business plan will include assumptions about the assets you need to run your company. Most owners will obtain property insurance to protect company assets from damage of theft. Those assets may include buildings, equipment or vehicles.
Many business owners use the business plan to find investors. A potential investor may ask you if your company has business income insurance. This policy can provide income if your company suffers losses due to a shut down or if operations have to be reduced on a short-term basis. An investor may also want to know if you have a general liability policy in place. These policies can protect your firm against customers or workers who believe they have been injured at your workplace.
You may find that potential investors want assurances that you have several types of insurance coverage in place before they will invest.
Once you’re up and running, your clients may rely on your advice and expertise. This is particularly true of service-related businesses, such as law, medicine or accounting. You may have a need for professional liability insurance. This policy can protect your firm, should a customer pursue litigation against you after relying on your advice.
As you grow your start-up business, you may need to hire employees. Adding workers allows you to delegate tasks, so you can focus on growing your business. Many businesses obtain employer practices liability insurance. This policy can protect you against legal actions by workers. These might include wrongful termination, discrimination or harassment.
Feel free to contact us for assistance during the following phases of your startup:
- Business planning
- Insurance planning
- Purchasing equipment
- Signing a lease
A Team of Advisers
To maintain focus on your start-up business, you can retain a team of outside experts to help you with certain tasks. That team may include an attorney, accountant and an insurance professional.
Fusco & Orsini can apply their years of business insurance experience to your unique situation. They can tailor a set of insurance solutions that fit your needs.