Whether you own an established business or are just beginning to make your mark in the industry, getting business insurance is pivotal for survival. While some types of insurance are required by law, others might be needed by your business investors or associates. Either way, business insurance plays a vital role in helping protect your employees and business investments.
Today, you can find various business insurances to support startups. If you’re looking to buy one, this article is for you. In this piece, William Schantz will discuss four types of business insurance for startups. Read on.
4 Types of Business Insurance for Startups as Per William Schantz
According to William Schantz, the following are four types of insurance for small business startups:
1. Property Insurance
This type of insurance is best known for protecting your company’s physical assets, such as inventory and buildings. Property insurance provides coverage for a vast range of events, including:
According to William Schantz, property insurance is a must-have for all the startups that involve the risk of encountering the events mentioned above. One thing to note here is that property insurance does not offer coverage for flood damage. You need to purchase flood insurance separately to ensure your business is protected from the flood.
2. General Insurance
This is one of the most common types of insurance for startups. This insurance aims to provide your business with financial coverage if your business faces lawsuits, claims, or settlements. These events may occur due to property damage or any injuries associated with your business.
Also, these events might arise due to non-physical acts, such as libel or slander. All these aspects contribute to making it a must-have policy for startups. That said, if you’ve started a new business and are looking for suitable insurance, general insurance should be your first target.
3. Business Owner’s Policy
William Schantz suggests you opt for a business owner’s policy if you want to enjoy the benefits of both property and general insurance. And the best part about this policy is it is typically the most affordable option out there.
This type of insurance helps protect your business against lawsuits, fire, theft, and much more. One thing to note here is that not all companies are eligible for a business owner’s plan. However, if you own a small startup, the probability of getting a BOP at an affordable cost is much, much higher.
4. Flood Insurance
There’s no denying that a flood can significantly damage your business – even if your company is located on a hilltop. Since property insurance does not provide flooding coverage, purchasing flood insurance separately is crucial for a startup. This will help restore your business operations after a disaster.
In addition, flood insurance is supported by the federal government, helping businesses bear financial losses that occur due to property damage caused by flooding.
The Final Verdict by William Schantz
It’s no secret that getting the correct type of insurance is vital for both established and small businesses. A good insurance plan will protect your business from financial and other losses due to various events. You can find numerous types of insurance for your business, from flood insurance to property insurance. Each one of them is unique in its own way. If you’re looking for a suitable insurance plan for your startup but are unsure which one to pick, take help from the list of four types of insurance compiled by William Schantz.