Why Your Startup Should Have Business Insurance
Startup businesses face a myriad of challenges, including limited capital, poor sales and lack of qualified personnel. If you are in this kind of situation, you may have a hard time deciding whether to get a business insurance cover for your business. After all, insurance is not a mandatory requirement.
The extract below discusses the various reasons why your startup should take up an insurance cover.
Protection for All Stakeholders
Regardless of how cautious you can be, accidents can happen at the workplace. Take up an insurance cover to ensure your employees, customers and third parties are protected. Workplace injury suits are expensive, and they could bring down your business. If you are in the manufacturing business, product defects could result in legal suits. Consider a product liability insurance cover to protect your business, brand image and customers.
Additionally, get a tradies insurance cover for your tools and equipment. Also, insure business vehicles against unfortunate incidents such as fire, theft and even damages.
Improves Your Business Credibility
A rule of thumb is that even if only one client requires you to have an insurance cover before transacting business with you, get one. Not only does it help show how reliable you are, but it also gives the customer confidence in working with you. For example, most people seeking construction services in Australia require the contractor to have public liability insurance. Likewise, those seeking consultation services such as conveyancing will ask you to have professional indemnity insurance.
Builds the Investors' Confidence
Investors will have confidence in an insured business. This is because their investment is protected against unfortunate events such as fire or floods. Confident investors will not hesitate to pump more funds in your business when need be.
Gives Your Business Continuity
Lack of an insurance cover would mean shutting down your business in case of an unfortunate occurrence. With a good insurance cover, your business will be up and running in a few weeks. Additionally, covers such as business interruption insurance will protect your business from incurring losses after the incident when the company is not operational.
There are many business insurance options available in the market today. Consult a qualified and experienced insurance agent to advise you as to which covers will benefit your business. Besides, the agent will advise you regarding the various packages offered by the insurance firms. Ensure that you read the terms and conditions as small mistakes could make your claim null and void.