With technology making it easier than ever to start and run a business, startups are springing up all over Canada. If you’re considering startup insurance, congratulations! That means your startup is growing or you know the importance of insuring yourself and your business from the risks that all business owners face.
If you’re not sure whether your business needs startup insurance, consider what you would do if someone was injured at your place of business or by the products you sell. Or if a fire tore through your business property, destroying all your inventory and equipment. Or what you would do if you were served with a lawsuit claiming you were negligent in your services.
Now compare the potential costs of those scenarios against the fact that startup insurance can cost as little as a few hundred dollars a year and the advantage is clear. It’s not worth the risk or the stress to save yourself a couple of dollars a month.
Our startup insurance plans are tailored to your specific business insurance needs by a commercial insurance specialist – ensuring you have the exact coverage you need at the best rates. Below are three of the most common types of insurance coverages you’ll find in a startup insurance plan.
1. Commercial General Liability Insurance
This is standard coverage for almost every business. In fact, you may have landed on this page because a vendor, supplier or selling platform will only do business with companies that are insured under a CGL policy.
Liability Insurance policies are also available for technology specific businesses. If you’re a business that provides services and products that are in the form of software, computer hardware, consulting and other data related services to businesses and/or individuals consider purchasing Liability Insurance for your business.
If you lease your workspace your landlord may also require you to have Commercial Tenant insurance coverage as part of your CGL policy before they lease to you.
CGL insurance can protect your startup by providing coverage for:
- Medical expenses for injuries to third parties and/or costs to repair or replace property damaged by your products or business practices.
- Legal fees, including lawyer’s fees, settlements and awards for damages for lawsuits alleging
- Personal injury
- Property damage
- False advertising
- Libel or slander
It’s important to remember that an unsatisfied customer, professional plaintiff or a competitor upset with your success can bring a frivolous lawsuit against you that would cost you out-of-pocket without a CGL policy.
2. Commercial Property Insurance
Every day, businesses across Canada experience losses due to fires, floods, gas leaks, windstorms, burglaries and other perils. The difference between businesses that recover and those that are closed down permanently is usually a commercial property insurance policy.
With commercial property insurance, you can protect your startup’s property such as:
- Buildings and structures
- Equipment, computers and devices
- Inventory and office supplies
For home-based startups, a home insurance policy may not cover your business activities and property.
3. Professional Liability / Errors and Omissions Insurance
If your startup provides consultancy, professional advice or other services in Canada, you may be required to carry E&O insurance to obtain and hold a license to provide those services. Even if you’re not required to, having professional liability insurance is still an important part of your startup’s risk management strategy.
Like a CGL policy, E&O insurance can protect your startup from the costly expenses of litigation. Everyone makes mistakes from time to time and as a fiduciary or a provider of professional services, even a simple data entry error has the potential to cause your clients financial losses, aggravation or harm.
Start your Startup on the right path with Startup Insurance provided by Commercial Insurance Specialists.
Commercial insurance is all we do. With ALIGNED, you get a commercial insurance specialist advocating to get you comprehensive startup insurance at affordable rates. We work with Canada’s top insurance companies for reliable protection when you need it most. Contact an ALIGNED advocate to get a free quote on startup insurance in minutes or get started right away by using our free online tool.