One of the key factors to consider when you’re finalising all the aspects of your new startup is the various insurance policies you’ll need. For the most part, the coverage you require depends on the type of business you’re operating.
Finding the right insurance types for your new business can be a daunting process. Especially if it’s not your area of expertise. This is the reason many new business owners rely on the expertise of a business insurance broker to get the process started. Keep reading as our experts give you an idea of the various insurance policies that should be on your must-have list!
Insurance Coverage Has Never Been More Relevant
Let’s call a spade a spade. The world is in a dire state. Not only is the weather wreaking havoc all over the planet, but so many political and economic aspects seem to be going wrong at the same time. Not having the right insurance could leave your business in crisis in the event of an unfortunate catastrophe. We’ve listed a few of the more significant insurances to consider adding to your business portfolio.
Event Public Liability Insurance
Any business in the events planning and hosting sector should have event public liability insurance before they start issuing quotes. For the most part, this insurance covers possible injury to any person attending the event.
Common events that may require this insurance can be listed as:
- PR & media events
- Trade shows
- Charity events and fundraisers
- Music festivals
- Weddings, birthday parties and other occasion events
The last thing you want is to have litigation against your business because a visitor to the event tripped on a sound cable and got injured!
With an ever-increasing risk of cyber threats in all industries, opting for cyber security is almost a no-brainer! While you might think that cyber threats are only relevant in larger corporations with extensive data, the reality is that everyone is at risk.
Any business that holds any form of customer data on a server is at risk of a breach. Cybercriminals can either steal the data outright and use it for fraud, or they can hold it for ransom. In this instance, you will have to pay a fee to have your customer information returned.
Depending on the nature of your business, this data may be very sensitive—such as banking or personal information. Investing in top-notch cyber security and cover will provide the following:
- Standard and advanced data security
- Corporate data liability
- Personal data liability
- Data recovery after a breach (this includes restoring and protecting your hard drives and servers)
Before opting for just any cyber insurance, be sure that your customer information will be safeguarded as well as the systems and servers where this data is stored. You also want to have a solid recovery program in place that will help you get back on track after a breach.
Any business that lived through the 2020 pandemic will understand the importance of business interruption insurance. Having your business closed for months at a time can either force you to shut your doors for good or cause you to run at an extensive loss.
Essentially, business interruption insurance covers any listed events that make it impossible for your company to trade in its normal circumstances. The most significant of these are listed below:
- Natural disasters such as tornados, earthquakes, floods and other excessive weather phenomena due to climate change
- Effects of forest or bushfire
- Property damage such as acts of vandalism, including events related to political protests
Be sure to check with your insurance broker that the issues covered under business interruption are relevant to your business and the potential risks in the specific industry.
Again, travel insurance is one of those types of insurance that may not apply to every new startup right away. However, if you or your employees have to do extensive travelling to promote the business, it’s well worth considering. This is especially handy in instances where you’re travelling out of state or out of the country.
The top factors covered by most travel insurance options include:
- Personal injury cover
- General costs associated with identity theft and subsequently lost wages
- Evacuation due to natural disasters or political factors
- Top-notch access to travel, medical and crisis management specialists
Many people who travel often already have travel insurance in place. So in this instance, it would be a good idea to speak to your broker to add your business travel to the policy.
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Finding the right insurance for your business should be one of the priorities dealt with during your company setup. Doing this will ensure that you’re covered from the very beginning and you’re also less likely to let it fall by the wayside when you get distracted by the day-to-day running of your company. Be sure to liase with your insurance broker to find the right insurance that is most relevant to your company, employees and potential customer protection!