From the beginning of any business, there is always a chance of facing risks and challenges, for instance when your business is having lawsuits and liability claims. Without insurance coverage, a single lawsuit is enough to put your company out of business due to the huge amount of compensation that needs to be paid. Other potential risks you need to ask yourself; Is there any chance your customer could be harmed by your product and claim compensation? Do you have buildings, contents, vehicles, employees, company assets to insure? Fortunately, there’s a wide range of business insurances that will protect your company from potential financial liabilities arising out of these incidents. To have a better understanding and to make sure you choose the right protection, below are comprehensive explanations about the most common types of insurance needed for startups.
PUBLIC LIABILITY INSURANCE
Public liability insurance is a protection against compensation claims for damage, injury, or other unfortunate circumstances that happen in connection to your business activities. For example, someone files a lawsuit because he falls on a wet floor when visiting your office. At this point is where your insurance company provides coverage on the damage to protect your business against costly compensation claims.
WORKERS COMPENSATION INSURANCE
Workers compensation insurance provides benefits of covering the expenses of your employees’ medical treatments, disabilities, and even death if they get injured, sick, or die as a result of working for your company. This type of insurance is one of the company’s legal requirements in most countries. If an employee suffers a work-related injury, the insurance policy will also cover lost wages during the course of treatment.
PROPERTY INSURANCE
It doesn’t matter whether you rent or own a place for the company’s physical location, property insurance is one of the most important insurance for business owners. This insurance provides protection by covering the cost of loss or damage for your company’s primary assets such as building, furniture, equipment, inventory, etc due to fire, theft, or any other catastrophic event. For instance, If a fire damages your office, the insurance will help to pay for the repairs or replacement. Furthermore, having property insurance is a compulsory requirement for startups that accept bank loans or receive capital loans from angel investors.
VEHICLE INSURANCE
Basic vehicle insurance will help to cover third party injuries if you or your employee at fault for an accident while driving your company vehicle. So, as long as you have a company vehicle, it would be wise to buy vehicle insurance to protect your company against liability claims. Contact your trusted-independent insurance agent for a more advanced plan that will cover vehicle damages as well.
PRODUCT LIABILITY INSURANCE
Product liability insurance is essential especially if your company manufactures goods that are sold to the general public as direct users. Despite the fact that you put extra precaution to ensure that your products are safe, there will always be a chance of your product causing harm to customers because it fails to work properly. This insurance helps to protect your business from lawsuit claims in the event of damages or bodily injury caused by your product.
HM CONSULTANCY: SINGAPORE’S NO 1 TRUSTED INDEPENDENT INSURANCE CONSULTANCY
HM Consultancy provides comprehensive choices of business insurance products from various trusted insurance companies in Singapore. By choosing our services, you will get objective analysis to help you on deciding which insurance policy has the right coverage with the best rates for your business’ needs.