During the startup phase, your tech startup might find itself vulnerable to various business risks that may impact your success. By investing in an insurance policy, you can potentially protect your business and financial nest egg from numerous threats. As a small business owner, you’ll need to consider an investment in an insurance policy to ensure effective risk management. By effectively managing risks that your startup may come into contact with, you’ll be protecting your assets from any challenges that may arise. Read on to find out why your tech startup might need an insurance policy.
How an Insurance Policy Can Benefit a Tech Startup
During the initial startup phase, you’ll want to invest in business insurance to protect yourself from any risks that may occur. Tech startups are particularly vulnerable to lawsuits that may damage your business’ reputation, fires, data breaches, and theft that can cause immeasurable property loss. Making an upfront investment in a business insurance policy can provide a certain level of coverage (at your expense and discretion) as a form of self-protection. Additionally, levels of coverage are required by law and vary based on your state.
Essential Insurance Coverage for Startups: General Liability Insurance
Your tech startup will need to invest in General Liability insurance to cover the costs of any legal fees and settlement fees if your startup is sued. This particular type of insurance protects against bodily injury and property damage that your startup may be held responsible for. This coverage can cost anywhere from $500 to over $2500 based on your business’s size and the level of coverage that you desire. It’s essential to invest in General Liability insurance the moment you establish your startup because it will not be available in the event you are sued without coverage. Furthermore, if you aren’t covered, you’d be legally responsible for all expenses related to being sued — which could potentially bankrupt your startup.
Errors and Omissions (E&O) Insurance Coverage
Errors and Omissions (E&O) insurance coverage is required to launch a product or provide a product for a client. This particular insurance coverage protects your startup in the event of product failure or financial loss from a third party. Depending on your startup and revenues, this insurance coverage can cost anywhere from $1500 to over $3000, but it is worth protecting your company. Interested in finding out about ways to protect your tech startup through insurance investments? Contact Malden Solutions today!
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.