Even startups and small companies cannot overlook insurance

As the economy slowly regains steam, startup businesses have become more popular. Entrepreneurs of all ages are looking to create their own companies. Even cities that have not been popular startup locations in the past are beginning to see organizations being formed.

Bloomberg Businessweek explained that Detroit, New Orleans and St. Louis are just some examples of areas that are playing host to startup companies.

For example, Tim Williamson told Bloomberg that after he spent most of his career in New York's financial industry, he eventually moved back to New Orleans to care for his father. It was then, in 2002, that he decided to create a non-profit that encourages entrepreneurship. Last month alone, during his New Orleans Entrepreneur Week event, 51 local entrepreneurs participated in strategic consulting sessions and a pitch fest. 

When companies are first created though, it is essential that owners do not overlook insurance policies. Especially as many startups are run through an individual's home, assuming that homeowner's insurance is enough is not well-advised.

"As a home-based business owner, two types of insurance cry out for your checkbook: liability and property damage," explained a contribution piece in business blog Entrepreneur. "Liability protects you against someone getting injured on your premises or by one of your products. Property damage protects against damage to a host of things, from computers to carpets."

The news source added that company heads need to keep their policies up-to-date and take other simple steps to prevent losses. Common sense measures should be standard practices, like using surge protectors and backing up computer data.

Overall, it's smart to examine your business to determine net worth, liability "red flags" and the likelihood of business interruption. This is where commercial insurance specialists can be helpful, as these professionals can work with you to pinpoint exactly which coverages are necessary for your daily operations and location.

 

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