Startups Can Ignore Somethings But Insurance Isn’t One


Look, we know, there is a lot to think about when starting a business and that can mean that a lot of things fall through the gaps. It’s kind of like wedding planning in that sense. You’re focusing so hard on getting the location right, and table plan, and the photographer and all of that sort of stuff, you forget to have a rain plan in place. That can be seriously costly to your big day, in the same way not having the right insurance in place can be immensely costly for your big startup.

The tricky thing is, there are loads of different types of insurance to consider. Don’t worry, though, below is a list of the top 5; the coverage you are most likely going to need.

Protecting Your Company’s Assets

If your company’s assets are your backer’s main concern, then next time you have a meeting with them, appease their concerns by telling them you have secured Comprehensive General Liability insurance. The great thing about this form of cover is that it requires your insurance company to pay for your legal defense anytime a claim is brought forward. It doesn’t matter if it is third-party bodily injury, personal or advertising injury or even property damage; they’ll cover the costs.

Cover Your Own Backs A Bit More

Employment Liability Insurance is definitely a must-have for startup companies, in which the insurer will provide and pay for any defense required. One of the big bonus’ on this front is that it can be bought in a package deal, allowing you to cover yourself from all angles. According to the professionals at, the big one here is discrimination claims, which are common, expensive and complex. Claims like these can end a startup company’s dreams right there and then. What makes a startup so susceptible to these kinds of claims is a startup’s needs for highly skilled employees.

Hacking Hits Small Businesses Hard

It seems like there is another high-profile hacking case every week in the press, which is proof enough that you need cyber insurance. The tricky thing with this area of insurance is, well, there is no standard cyber insurance policy, although does give you a good introduction to it. As such, what your startup needs to do, is talk to your legal advisors and ensure that you take all precautionary measures when it comes to cyber security and enact best practices. By doing this you are protecting yourself from cyber insurers that try to claim you have not instituted industry-standard cyber security programs. So cover yourself and you’ll be covered should something happen.

Protect The Big Wigs

As a startup company wanting to grow, you’ll want – and need – to attract some well-known individuals onto your board. The only thing is, they will insist they are protected from anything regarding their business decisions. To give them this peace of mind you’ll need to get yourself Directors and Officers Liability Insurance, also known as D&O coverage. This will protect your board members from any claims of wrongful acts, which is basically a legal term for making decisions that had a harmful effect on the company. That’s what they want to be protected from.


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