When you’re getting a tech company off the ground, the last thing on everyone’s mind is the insurance policy. Before you open your doors for the first time, contacting general liability, malpractice, and cyber insurance companies should definitely be on your to-do list. Mistakes happen and disastrous events can wreak havoc on any business plan, and having these eight types of coverage will make sure your company can prosper, even in the hard times!
#1. General Liability
The basics of all insurance and general liability policies cover all the essentials needed to safeguard your business from the unforeseen. While every insurance company has its own policy peculiarities, most of these plans cover the business in case of accidents including basic property damage, on-site injury to a third party, and other common incidents. Dropping a work laptop or falling on slippery floors are both types of events covered.
#2. Cyber/Identity Theft
Data is quickly becoming the keystone for business success, but managing all of that information may be a cause for concern. Hackers are constantly looking for new ways to cause data breaches. Having coverage through cyber insurance companies helps to handle the costs associated with data theft. From customer notification expenses to costly exploit lawsuits, having cyber coverage will protect your business when hackers do their worst.
#3. Product Liability
Most tech companies are producers, either creating devices for their customers or programming software to make their lives easier. When those products fail, it can be a massive headache for your business. Investing in product liability insurance will help keep your business from going bankrupt from one little software bug. Different types of coverage include:
- Product Tampering
- New/Hazardous Liability
- Warranty Inefficiency
- Retroactive Liability
- Recall Expense
- Software Liability
Even virtual product issues may result in the loss of a customer’s crucial data, so even SaaS businesses would do well to acquire a policy that covers their products. Consult with cyber insurance companies to learn if your policy covers software liability.
#4. Property Insurance
If your business needs equipment to run and space to work in, property insurance is a must. The term “property” includes everything from buildings and warehouses to laptop computers and everything in between. You shouldn’t purchase anything for your business without adding it to your property coverage policy. Usually, these types of plans will protect your goods from fire, smoke, extreme weather, and vandalism.
#5. Workers’ Compensation
Having a staff of hardworking men and women means ensuring their safety while on the job. With workers’ compensation insurance, your employees are protected if they get hurt performing business as usual. These policies cover accidental injury and the associated medical costs. It can even help with missing wage and benefit replacements. On the other hand, identity theft cases are generally covered by cyber insurance companies. You need workers’ compensation insurance in most states before you can even open for business!
#6. Home-Based Business
If you run a company out of your house, home-based business insurance is a necessity. Many homeowners think their policy will cover any incidents that happen when they use their spare bedroom as an office. However, most plans don’t cover you if an accident happens that involves your business. They usually won’t reimburse you for damaged company equipment, either. Much like cyber insurance companies, home-based insurance providers have specialized plans to help protect all of your business assets.
#7. Business Interruption
The pandemic caught a lot of companies by surprise, forcing businesses to either close temporarily or shut their doors for good. It is in scenarios like these that business interruption insurance really pays off. Whether by a health crisis or natural disaster, if you are forced to close your business, interruption coverage may help handle those expenses that need to be paid continuously. The last thing you need to worry about during a crisis is how rent, utilities, or wage obligations are going to be met!
#8. Director’s and Officer’s
Insurance is all about mitigating risk from accidents and mistakes. Believe it or not, there are times when the business needs protection from its directors as well! Having this type of policy helps to keep individuals in management separate from the business itself. If you or another official gives poor advice or loses their head on the job, the company may be held liable. With directors’ and officers’ insurance, you’ll be covered from any such unfortunate incidents.
The Essentials of Insurance
From protecting your equipment with property coverage to safeguarding your clients’ data with help from cyber insurance companies, you’ll need a number of policies to make sure your business is completely covered. Check with your state about specific regulations regarding the types of coverage a company such as yours requires for operation. Once you have an insurance plan in place, you can rest easy knowing the company is secure, no matter what the future may bring!