As a startup, getting funds may be stressful. However the risk of losing profit or capital due to unforeseen circumstances beyond your control is something that in most circumstances cannot be avoided.
Insurance is a way of protecting one’s self or assets against unforeseen events. It works simply by an insurance company being the insurer indemnifying the insured person against loses. This means that in the case where you take a policy and a loss occurs on the property or subject matter you have insured, the insurer would step in and bear the loss on your behalf either by paying the cost of reinstatement of paying you a lump sum of money.
As an entrepreneur, getting insurance for your business is necessary and it would serve useful should the need ever arise.
These are some of the necessary insurance policies you should take out for your business
- Professional Liability Insurance: This would be to indemnify you against negligent acts while providing services to your clients. In the situation where your client relies on your advice and the advice turns out to hurt the client, he may take an action against you in court. Should the accusations be proved and a fine is levied against you, the professional liability insurance would come to your rescue.
- Property Insurance(Real Property): This is perhaps the most essential. An insurance policy is important to protect your properties. This policy may include cover in case of mishaps like fire, flood and even theft.
- Product Liability Insurance: For entrepreneurs who manufacture, you might want to take out an insurance policy on the adverse effects of your products. This will forestall you paying for harm your products may cause on the consumers.
- Vehicle Insurance: Being mobile is very important and accidents happen all the time. Rather than using capital saved up for planned purposes to fix your car after an unplanned accident, you can allow the insurance company step in and bear the consequences.
- Cyber Insurance (Data Protection): This policy is to prevent from hacks and data breach. This applies mostly to businesses involved in programming and data related services. With the security risk posed by cyber activities, this is a policy you want to have.
Note that these policies are subject to terms and conditions by the various companies offering them.