Why Startups Need Small Business Insurance in India

Launching a startup and becoming an entrepreneur is probably the most frightening yet liberating decision you will ever make in your life. As the owner, you have to make quick and tough decisions and go through ups and downs. Therefore forecasting and mitigating risks are essential for securing the future of the company.  One of the trusted resources to help you sail through difficulties is insurance. Enrolling in small business insurance can help mitigate and cover against a myriad of scenarios.

We have listed five reasons why startups need business insurance in India.

Insurance-Business-Protection-Safety-Planning

Covering liability

General liability insurance is important for businesses even in their earliest stages. It covers legal fees arising out of accidents, injuries and negligence. One unfortunate event in your office premises can land you in a legal lawsuit. Commercial places often need a certain amount of this coverage before signing the agreement.

Protecting property

Equipment needed to operate is one of the major expenses for startups. If you have a physical property that is prone to experience damage, you might want to insure it under the business plan. A property can be protected from numerous unforeseen situations like smoke, fire, hail storms, civil disobedience, vandalism, etc. It is advisable to protect your equipment against these scenarios under commercial property coverage. Also, many policies cover lost income due to interruptions in the functioning of the business due to damage.

Insuring products and services

Offering a product or service to your customers does not guarantee that it will always work perfectly even after rigorous product trials. Liability coverage protects you from potential damages that might be caused due to your product or service.

Protecting employees

As your startup grows and expands, so will your requirement for the workforce. At some point, you will need to bring on employees to handle various departmental tasks. Workers compensation will protect your employees as well as your overall organization. Whether an employee suffers on-job injury or requires long term medical attention, a worker’s compensation coverage will cover everything.

Errors and omissions

Professional liability insurance is different from general liability insurance.  It protects privacy, intellectual property, internet services negligence which causes intangible or financial loss to the third party. Startups that usually deal in fields like advertising and consulting might want to pay special attention to their professional liability plan to ensure that it is up to the mark.

The different types of business insurance plans startups can choose from

Property cover

Property insurance protects against risks to your business property. This includes not only the office premises or building but also the equipment, appliances, machinery, etc that you have within. The risks that are usually covered are earthquakes, floods, flooding, burglaries, vandalism and theft, property loss due to accidents, and mechanical and electrical failure.

Legal liability

This policy covers legal liabilities that might arise from personal injury or loss caused due to employees, customers, business partners or third parties. This may also cover accidents arising out of the use of business services or products.

Travel insurance

Startups that travel frequently for business purposes need travel insurance to handle delays or cancellations in travel schedules. You will also get cover in case of loss of luggage, medical emergencies or other scenarios.

Group health insurance

Insurance providers give a group insurance package to new entrepreneurs to protect their employees. This can be also expanded to provide coverage to the employee dependents.

As a startup owner, you are constantly on a tight budget with many priorities moving in parallel. Being a startup owner, it is your responsibility to protect your business from the beginning until the stages of expansion. SME Insure helps you select the right business insurance for your startup.

Comments are closed