Small Business Insurance for Startups and New Companies

Learn about the different types of insurance you’ll need to protect your small business and your employees. We explore the different types of insurance you may need when starting a new company.

By Brigid Connor, AmVenture Insurance Agency, Inc.

Small business insurance for startups and new companies
As an entrepreneur, you know what it takes make a business idea and turn it into a reality. From gathering startup capital to designing a website, launching a new business can have many ups and downs but is ultimately a race you were born to run. Before you plan your next move, you’ll want to make sure your hard work is protected. While your business needs will differ from your neighbors – no two businesses are the same – we’ve outlined below the common business insurance options you should consider to point you in the right direction.

What kind of business insurance does a new business or startup need?
Depending on your industry and where you live, some insurance may be required by law. You may also find that investors or business associations require you to hold specific insurance. Typically, small business will need:

  • General liability insurance
  • Commercial property insurance h
  • Business interruption insurance
  • Workers’ compensation insurance
  • Employment practices liability insurance
  • Commercial auto insurance

Can I bundle business insurance options?
Want to quickly knock several of the above insurances off your list? Try a businessowner’s policy. A BOP is an easy way to cover property and liability threats small businesses frequently face by bundling property, business interruption, and general liability insurance. If a customer gets injured, a theft occurs, or a piece of equipment gets damaged, you’ll want to get things back in order quickly.

Do I need worker’s compensation insurance even as a startup?
As a startup, your employees are the heart of your operation and you’ll want them protected in the event of an accident. Workers’ compensation will ensure your employees are taken care of if they are injured on the job. While you do your best to maintain a safe work environment, accidents can and will happen. Not only does worker’s compensation provide benefits to workers, it can also help protect you as the business owner from any legal fees that may arise if a lawsuit is filed in relation to the incident. Plus, nearly every state requires workers’ compensation insurance for all sizes of businesses. Supplying a workers’ compensation policy will ensure that both your employees and your business will be protected in the event of a mishap at your place of business.

Depending on your location, disability insurance is also required, covering illnesses or injury off the job.

How can I protect my business from employment lawsuits?
The last thing a small business owner needs is a lawsuit, especially one that occurs from a previous or current employee. Employment practices liability insurance (EPLI) protects your small business if a harassment, retaliation or wrongful termination suit occurs. Whether or not the case has any merit, a lawsuit can be a financial hardship for a fledgling business. Even with a small, tight-knit group of loyal employees, it’s always smart to have EPLI coverage in case you are ever subjected to employment-related litigation. And, depending on your needs, you can customize an EPLI policy with added protection to include third-parties.

Do I need insurance for company vehicles?
Do you have a vehicle for your startup? Whether you have several vehicles or just one, if your business relies on making deliveries or transporting people, an accident or disruption could have negative impact to your bottom line. Many businesses use company cars and other vehicles to carry out a wide range of important business functions. With commercial auto insurance, your business will be protected in the event of an accident. States also have minimum coverage requirements for commercial auto insurance, so make sure you have the correct coverage in place.

How do I get small business insurance?
Business insurance is meant to protect both your employees and your investment in your business (and keep you in compliance with the law). It’s a good idea to discuss your business with an insurance agent who can help ensure you have the right coverages in place. Insurance needs will vary from industry to industry and state to state, so an expert in the insurance field assist you in getting the coverage you need at a reasonable price.

AmVenture specializes in Small Business Insurance and works with companies to ensure they have the coverage they need for their industry, location and unique setup. If your startup or new business needs coverage, call us or fill out a quote request online.