3 Must-have Insurance Policies for every start up business owner

Starting up your own business enterprise is a big leap of faith and involves some calculated risks. This is a dream of many people in today’s business environment and the proper insurance can provide not only protection but also peace of mind, giving you more time to concentrate on and build your business. Most start up business owners know the value and importance of insurance, but the question can be just what insurance policies are essential for the start up. Some new entrepreneurs presume that business liability insurance is the only one they need. The fact is, it is one of the most important insurance policies for a start up business. Here is a more comprehensive list of insurance that will ensure the start up business is kept adequately protected.


When there is a discussion about liability, it is not restricted to the business liability insurance. There are two types of liability insurance that every start up business owner should be aware of before starting your new business.

  • General Liability Insurance: General or Business Liability Insurance is the one that will protect you from the legal concerns that might come your way. This will prove itself when your product or service becomes the reason of bodily injury or property damage. Also, there is the chance that, for example, wet floors at your business premises cause a customer to fall and injure themselves resulting in a lawsuit. General liability insurance will cover the medical and legal expenses.
  • Professional Liability Insurance: This is another type of liability insurance that is also known as Errors and Omissions Insurance. It covers the insured against legal concerns that you might face due to an improper presentation of professional services, albeit accidental.

Property Insurance:

Your business property is likely costly and your business documents highly valuable. These all can be destroyed by hazards like fire and theft. Property insurance will protect the costs of replacement of the business property/documents. Some owners combine the Property Insurance with Business Interruption Insurance. A Business Interruption Insurance policy will cover the income that you would have received otherwise if the equipment was not destroyed.

Workers Compensation:

Workers compensation is one of the must-haves of insurance policies for any be it a start up or an established one. In some jurisdictions, it is the law to have workers compensation insurance. This provides medical benefits and even lost wage coverage if an injury happens to an employee as a result of their employment. The advent of pay-as-you-go workers compensation has made things easier for employers to run their business.

These are the three types of insurance policies a start up must have. Good luck and grow your business!