Insurance You Need For Your Startup

Insurance You Need For Your Startup

If you’re running a startup, your main focus is probably how to grow your business. But it may be time to consider getting insurance in order to protect your business.

Here are some of the essential insurance products you will need for your startup:

Commercial General Liability Insurance (CGL)
CGL Insurance is made to cover your company in the event that you are sued for bodily injury or property damage to other people or businesses. This would also cover any property in the form of office equipment, stock, IT hardware, etc. Coverage also usually includes legal defence. It’s also important to note that you should purchase enough liability coverage. Most contracts require $2M but some larger clients may require $5M liability coverage or more. 

Errors and Omission (E&O) Insurance
For anyone offering professional services, this type of insurance is essential. Doctors, Lawyers and Accountants are usually ones who need this insurance but most startups now require Errors and Omission coverage – especially if your startup involves any type of consulting or technical work. A good way to know if you need this coverage is to ask yourself “does anything my business does, or neglects to do, have the potential to harm a client?” If the answer is yes, you should get this coverage and your clients will likely require it by contract.

Cyber Insurance
Cyberattacks are becoming more common especially in an increasingly digital world. If your startup has any client data at all, then you need to consider Cyber Insurance. Coverage for this typically includes liability for stolen client data, legal defence and crisis management. 

Directors and Officers Insurance (D&O)
This liability insurance protects C level Executives, Officers and Directors in the event that they’re sued for actual or alleged wrongdoing when managing your startup. You may purchase first and third party coverage to protect such things as wrongful acts, shareholder or M&A lawsuits, and class action lawsuits.

Employment Practices Liability (EPL) Insurance
Most businesses that purchase D&O insurance also purchase Employment Practices Liability – especially for smaller companies that don’t have an office human resources department. This liability covers your business in the event of an employee lawsuit such as wrongful termination, sexual harassment, discrimination by gender, race, age or sexual orientation.

There are countless other types of coverage a business may want to purchase as they grow and a good insurance broker should be able to advise you on the right decisions. To get a quote on your startup, call our office today at 905-696-9090 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. 

 

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