Tech startups are a part of the wonderful success stories everyone hears. However, if not properly covered by insurance, it can lead to financial and legal ruin. When your tech startup is starting up, it is vulnerable to financial risks that investors and owners will be held responsible for. Proactive protection with the appropriate insurance policies can keep your tech startup from floundering if anything goes wrong. Starting a new business is expensive and requires the proper safety nets to avoid bankruptcy.
The Benefits of an Insurance Policy for Your Tech Startup
Business insurance for any new business protects you from possible lawsuits that can damage your reputation, fires, data breaches, and theft. Tech startups are vulnerable to the same issues as any new business, meaning you should invest in business insurance. If you are looking to build a business that remains in good health for years to come, investing in insurance will help solidify the financial safety net your tech startup will have.
Errors and Omissions (E&O) Insurance Coverage
Errors and omissions (E&O) insurance is required for any business to launch a product or service to a client. This insurance covers your tech startup in the event of financial loss from a third party or product failure. This policy costs anywhere from $1,500 to $3,000 but is worth the investment. Proactive protection with the appropriate insurance policies can keep your tech startup from floundering if anything goes wrong.
General Liability Insurance
Essential for new businesses, general liability insurance protects against bodily injury and property damage. As a tech startup, you are vulnerable to lawsuits if your product fails. General liability insurance can cost between $500 and $2,000, depending on what level of coverage you go with and the size of your business. Once your business has been filed and officially begins, you should get general liability insurance to ensure you are covered from the very beginning. If you are sued before you file for general liability insurance, your tech startup will be held responsible for any expenses, possibly bankrupting the startup.
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.