Founding a startup company takes creativity, strategy, leadership, and resources. Business owners of startup companies often desire to minimize initial costs, but one business aspect not to overlook is commercial business insurance.
Startup insurance is a specialized solution designed for early-stage and growth-stage businesses, offering customizable coverage options to address the unique risks faced by startups.
From the very foundation of a startup company, both the business owner and the business itself become exposed to risk. Due to the fragile nature of a startup company, business owners must be proactive in protecting their business from these risks. Meeting insurance requirements is also essential for building credibility, securing contracts, and fulfilling client or partner mandates.
Our business insurance experts at Pepper, Johnstone & Company have outlined 5 types of commercial business insurance most new startup companies need to consider. Some of these insurance policies are legally required for startups, depending on their industry and location, and should be tailored to the specific business needs of each company.
Five types of business insurance you may need as a startup company
1. General liability insurance
Today in the U.S., 73 percent of all businesses are sole proprietorships. While these businesses are appealing and easy to start, sole proprietorships also come with heavy responsibility. This form of ownership puts both your personal assets and business at risk.
Commercial liability insurance, or general liability insurance, provides essential liability coverage for a range of risks, protecting you as the business owner from being personally liable in the event of a lawsuit.
Startups that offer professional services should also consider professional liability and professional liability insurance to protect against claims related to their expertise.
2. Commercial property insurance
Commercial property insurance is another common type of business insurance for startups because of its wide range of coverage. Commercial property insurance often covers buildings, inventory, equipment, and events like fires, break-ins, vandalism, and other disasters, protecting against damaged property caused by these incidents. When it comes to commercial property insurance, you’ll want a policy that covers the full value of your business assets.
While a basic commercial property insurance policy may be all you need for your startup company, the types of coverage required and the pricing can vary depending on where your business is located.
3. Workers’ compensation
Workers’ compensation is familiar to most business owners. A workers’ compensation policy covers medical care and rehabilitation for employee injuries that occur due to work related injuries, and also replaces lost wages that employees may experience while unable to work. The cost and requirements for workers’ compensation insurance depend on how many employees your business has.
While workers’ compensation is a necessity for construction companies, business owners with companies that have employees in the office also need this coverage. For instance, if an employee slips and falls in the office or if an employee drives their personal car on company business, you need workers’ compensation coverage.
4. Commercial auto insurance
Going beyond workers’ compensation, some startup companies need commercial auto insurance to protect their assets. Whether your startup business owns company cars or regularly uses rental vehicles, commercial auto insurance can cover liability, property damage, and medical expenses.
5. Commercial umbrella insurance
Commercial umbrella insurance policies are imperative for startup companies. Having an umbrella policy can mean the difference between your business’s growth or downfall. Although most business owners make plans in case of failures, most startup companies do not account for catastrophic lawsuits and losses potentially occur.
Commercial umbrella insurance protects you and your startup company when losses exceed your primary coverage. Moreover, this insurance policy protects your assets by providing liability limits above and beyond your other insurance policies.
Pepper, Johnstone & Company provides more than commercial business insurance
At Pepper, Johnstone & Company, we recognize that no two companies are the same. When it comes to your startup company, you want someone who has working knowledge and experience with a variety of businesses and industries.
Our independent insurance agents have the experience to identify how to insure your business effectively. We offer customizable insurance packages with a variety of coverages to meet different business needs, and we help you find the right coverage for your specific situation. You can purchase insurance through our quick and convenient process. We go above and beyond to make sure that your insurance insulates you and your business with the protection that you need.
Specialized business insurance products
With years of experience in multiple verticals, we can recognize the unique risks that our clients may face with their startup companies. Our team works as consultants to walk you through specialized business insurance products that are relevant for specific industries.
We offer tailored insurance solutions for startup founders, including officers insurance and coverage for board members, to protect leadership teams from personal and professional risks. Our offerings also include employment practices liability insurance and employment practices liability coverage to safeguard your company against employment-related claims such as discrimination, harassment, and wrongful termination. Having the right insurance in place not only helps build client trust by demonstrating professionalism and reliability, but also makes it easier to attract top talent to your startup.
Loss prevention programs
Another service that we offer is a loss prevention program. In addition to providing the proper business insurance that you need, we can evaluate your business’s current operations and conditions. Through our insurance company partners, we can recommend ways to lower your losses, which leads to lower costs and an increase in productivity.
Quick claim response
At Pepper, Johnstone & Company, we represent companies with excellent records for settling claims fairly and promptly. We’re proud of who we partner with, and we can genuinely recommend our insurance carrier partners as trustworthy and ethical. Therefore, we not only get your claim submitted to the insurance carrier, but we also advocate on your behalf to ensure fast and fair handling of your claim.
Competitive rates
When you have a startup company, you want to work with people who understand your industry and value what you do. At Pepper, Johnstone & Company, we have extensive experience working with small businesses and small business owners, providing insurance solutions tailored to their unique needs. We represent and work with insurance companies that specialize in insuring specific types of businesses and industries. This specialization leads to exclusive coverage and pricing, along with special programs tailored to your business, including foundational options like a Business Owner's Policy for comprehensive protection.
Having the right insurance in place, such as a Business Owner's Policy, can also help startups raise money by meeting investor requirements and supporting your funding efforts.
Pepper, Johnstone & Company is independently owned and locally operated to handle your insurance needs, be it commercial insurance, home insurance, or just general insurance. We focus on Athens and offer affordable and reliable insurance choices all across Alabama, Georgia, Mississippi, North Carolina, South Carolina, Louisiana, and Tennessee. We will help you find the right combination of tailored, personalized insurance coverage at just the right price to fit your needs. Contact us today* to learn more about how we can help you.*