Insurance for Start-up Companies.
Start-ups are defined as enterprises working to deliver new, innovative and game-changing products or services in a variety of industry. As an aspiring entrepreneur or founder, the to-do list could be endless when running a start-up business. For that, Start-up company insurance is probably the last thing on majority on your minds.
As an upcoming start-up, one of the biggest challenges from a marketing perspective would be to establish authority and credibility when it comes to your target market. However, being able to let your clients know that your business is insured makes the job easier.
Majority of start-ups do not realize that if claims were to be brought against them for their business activity, they would still need to appoint a lawyer to deal with it. With the proper insurance policy, this expense is covered as long as it falls under what we call the policy liability coverage.
The kind of insurance that a start-up would need is dependent on the type of business you run. Such insurances can be reasonably affordable, effective and although it would add significant amount time to formulate, it will definitely add higher value to your business.
What type of insurance does my start-up need?
Depending on the size of the start-up, the primary business insurance coverage would differ. Some start-up company insurance may not be relevant depending on your business types and the structure.
Finding the right insurance product that matches your start-up requirement can be complicated. This guide is to provide you with relevant information on business insurance that may be applicable to your start-up.
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Cyber Liability
Many start-up businesses are inclined towards using technology for their preferred business venture. Thus, putting them at a high risk for potential data breaches. If the protected information were compromised, then the start-up would be liable for the expenses claimed by their client.
With Cyber Liability Insurance, your business will be protected for those expenses and reduce the burden on business cash flow. However, if your start-up does store data that is sensitive information, then having data breach doesn’t make sense.
Opting for this insurance policy provides your business with a protection that covers your physical asset including buildings and inventory. Physical asset for a start-up is defined as laptops, office fixtures and fittings, software equipment, etc.
The Commercial Fire Insurance also covers a wide array of events with relevant perils. For a further write-up on the coverage for fire insurance, the write up link is as per below.
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All Risk Insurance
If the start-up is currently based at either a co-working space or at home, then Fire Insurance won’t be necessary. Instead, your start-up can opt for the All Risk Insurance coverage as the nature of your working condition would encompass being on-the-go for presentations and meetings with the laptops and equipment at all times.
With the right added perils in the All Risk Policy, the All Risk Insurance could also cover your laptop and equipment in the event of unfortunate incidents.
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Employee Benefits Insurance
The workload can be heavy for many start-up employees. Thus, resulting in a high turnover rate. In order for start-ups to retain their employees, they would need to provide with medical benefits for the employees.
The Employee Benefits Insurance not only protects your employees, but also offers additional incentives for them to stay within your organization. With growing importance in healthcare, it is even more important for start-ups to have a comprehensive healthcare package that covers in-patient and outpatient insurance benefits for their employees.
Do I Need All of These?
The table below shows the type of insurance needed depending on the start-up stage and the industry you are in. For example, if your business is a local start-up
What is the Malaysia Business Insurance Calculator ie. SMCITY?
Looking to remodel the cycle of for SMEs to get their business insurance, we built a customer-centric online product that is intuitive and responsive to fill the gap between insurance companies and their distribution channels.
Providing a guideline to open for negotiation with insurance company at an industry rate, our Business Calculator software allows business owners to calculate the average premium needed for their Business Insurance in relevance to each industry and/or Small Medium Enterprises.
