As a business owner, have you been able to figure out some important aspects of your business? You have to make a decision on your business structure, business name, opening a business bank account and some other important business decisions. But have you really thought about getting your startup business insurance?
Understanding Business Insurance.
Business insurance is a type of coverage that protects your business against financial losses. It covers you if an accident or disaster occurs, as well as insures against theft and damage to property.
Getting your startup business insurance can help keep your company running smoothly by providing protection in case something unexpected happens that causes financial loss.
For example, if there was an earthquake and it destroyed all the buildings at the factory where you make phones, then business insurance would pay for any equipment damaged or lost during this time period so that you don’t have to close down operations for repairs or reconstruction costs until things are back up and running again (if possible).
General Liability Insurance
General liability insurance covers the business against claims of property damage, bodily injury, and advertising injury. It also covers business activities at the premises, on the premises or off the premises.
Business Activities: The policy will cover your business when it is operating as well as when you are away from home or traveling with your vehicle. The policy may provide coverage for loss of income if someone leaves their job because they have been injured in an accident while working for you.
However, it does not cover losses incurred due to personal injuries sustained by any person who was not involved in any way with your company’s activities at any time during this period.
Vehicle Ownership: You can add coverage for loss of use of a car owned by yourself or another member(s) of your team if this happens due to an accident where there were no passengers inside but only people outside (like pedestrians).
If there were passengers inside then only passengers would be covered under this type of policy rather than both drivers/owners together. Getting things straightened out initially can save money later down line!
Product Liability Insurance
Product liability insurance protects you against claims for bodily injury and property damage caused by a product you make, distribute or sell. It covers the cost of defending against a claim and compensating the claimant if you are found liable.
Product liability coverage is not required in every state but it’s a good idea to have it since most products involve some form of risk associated with them.
For example, if your product causes an injury that requires surgery, then medical bills incurred from injuries will be covered by your policy. Although, they might be eligible for compensation through workers’ compensation laws depending on how many people are involved in making/selling/distributing etc.
Property & Equipment Insurance
Property and equipment insurance covers the cost of replacing or repairing a business’ assets. This includes things like computers, office furniture, vehicles and other items that are used in your business.
In general, it’s important to have property coverage on all of your company’s assets—even if they aren’t currently being used—because you never know when something might happen to them (like if someone breaks into your office).
The main types of property policy include:
General Liability – Covers bodily injury or property damage arising out of any legal liability caused by negligence or carelessness on behalf of employees. This type covers only one claim per year at most (except for certain industries such as construction). It does not cover professional malpractice claims by employees against employers.
Automobile – Covers bodily injury or property damage arising from an auto accident caused by another driver while using public roads.
Directors’ & Officers’ Liability Insurance
This type of coverage protects the company from paying out a claim that arises from an employee, director or shareholder. It also covers any legal expenses and court costs incurred by the company if you are found guilty in court.
The amount paid out under this policy depends on the level of coverage selected and whether there is loss or damage caused to third parties (such as customers).
You should ensure that you have adequate levels of Directors’ & Officers’ Liability insurance as this will protect against any financial losses caused by claims made against individuals involved with your business.
This includes directors, managers and other employees who may be held responsible for accidents at work during their shift(s).
Business Interruption Insurance
Business interruption insurance is a type of startup business insurance that protects you from the loss of income due to a covered loss. It covers the cost of replacing your business’s assets, such as inventory, equipment and fixtures if they are destroyed or lost due to certain events.
The most common types of losses covered by this type of policy include:
- Fire or vandalism
- Floods and storms
Professional (Errors & Omissions) Insurance
Professional liability insurance is a type of startup business insurance that covers legal fees and other costs if you are found to be liable for a claim made against you. This type of policy is typically purchased by individuals, businesses and organizations alike.
It’s important to note that professional liability coverage does not mean that your company will be immune from lawsuits; rather it means that if someone brings forth a lawsuit against them for damages caused by their business practices then those damages would be covered under this type of insurance policy.
The cost for professional liability coverage will vary depending on several factors including size and scope of operations; industry type; location where the company operates from; type(s) of the product(s)/service(s), etc.
Employment Practices Liability
This startup business insurance covers all forms of claims from employees that may arise from claims of wrongful termination, discrimination, any form of harassment etc
Workers Compensation Insurance
Workers’ compensation insurance covers medical expenses and lost wages for workers who are injured on the job. It’s required by law in Nigeria, so it’s an important part of your business’s overall health plan.
Workers’ compensation insurance is a form of startup business insurance that provides coverage for employees who suffer work-related injuries or illnesses. It can help you avoid having to make costly medical claims on top of lost time off from work, which will reduce your costs significantly over time.
Also read: Pitfalls to avoid when buying insurance.
How to get your startup business insurance in Nigeria
- Firstly, you should make a decision on the type of startup business insurance that is suitable for your business.
- Evaluate the risks associated with your business in order for you to decide which policy to sign up for.
- Get a list of insurance companies that offer your startup business insurance. This can be done by visiting the website of each company and making sure they are licensed to operate in Nigeria, as well as their policy terms, limits, deductibles and other provisions.
- Verify the list of companies to make sure they are licensed to operate in Nigeria and have an active local office where you can get your quotes if needed.
- You could also find a licensed and reputable startup business insurance agent to work with. He will help you find insurance policies that match your business needs. Look out for a trusted agent that will be interested in meeting your needs
- Compare the prices of various insurance companies so you can get the best value for your money. More importantly, you should compare rates, terms, and benefits for insurance offers as prices and benefits can vary.
- Choose the best company based on your needs and budget.
It is important to pay attention to the following factors when comparing quotes for your startup business insurance:
- The policy limits
- The deductibles (if any)
- The type of coverage
- The coverage period (for instance, the number of years you want your policy to cover you)
- The claims settlement process: This should be easy and quick. You shouldn’t have to wait for months or even years before you can claim your compensation if something happens.
Whether you are a startup or an established company, the type of business insurance that you need for your company is different. It should be customized to suit your individual needs and requirements, as there may be some policies that are not suitable in certain circumstances.
Now that you have all the needed information about getting your startup business insurance, it will be easy to make a decision about which insurance plan to subscribe to.