How much insurance does a web start-up need?
As a start-up, purchasing insurance can be a costly experience, especially when working with an already limited budget. However, some insurance types are crucial, while others may not be required during your business’s current timeline. Nonetheless, insurance requirements are often on a case-by-case basis and depend on how you operate, how many staff you have employed (if any), and various other factors.
This blog post will signpost different insurance types you should consider purchasing as a web start-up.
General liability insurance for web start-ups
General liability insurance, sometimes referred to as commercial general liability insurance, protects a business and a web start-up by covering some costs associated with potential claims or property damage against your business.
This type of insurance mainly protects against lawsuits against your business and if someone is injured on-site on your business premises. Without this insurance in place, you will massively struggle financially if facing a lawsuit or potential claim.
Workers compensation insurance
More or less all businesses require worker’s compensation insurance, so long as you have employees. This type of insurance is necessary for a web start-up, providing insurance in the form of a portion of wage replacement, medical benefits should these be required if injured at work or if an employee suddenly becomes ill on the job.
Health & disability insurance for a web start-up
Finally, we have health and disability insurance. In some states, this insurance is required by law, protecting employees and providing financial support if they are unable to work due to a long-term illness or disaibility.
This is a deal-breaker for many employees (especially so if required by law in your state…), so ensure this policy is up to date and clearly stated in any employee contracts.
As a web start-up, there are various types of insurance you should invest in. As your business grows, you will likely need to invest in more insurance types; however, at the bare minimum, you should purchase general liability insurance, workers compensation, and health and disability insurance to protect the web start-up and your employees if needs be.