General Liability Insurance for Startups

As a small business owner, finding the right insurance that meets your needs can be a challenge. For most businesses, including startups, general liability insurance should be considered a requirement. It can be hard to know what insurance you need, or when liability insurance is needed, when embarking on a new business venture. Startup businesses have different needs than established companies and require an insurance plan that grows with the business.

 

Read more about other types of insurance for startups:

 

General liability insurance may not make you “lawsuit proof” – but it can provide your business with adequate financial protection should it be hit with a significant legal claim or settlement. No matter how diligent you are in following best practices and taking care of your customers, your business remains vulnerable to accidents, injuries, and claims of negligence, as well as baseless charges of harm.

 

Liability insurance for startups is typically structured to cover both actual financial settlements and the legal costs of defending lawsuits. If your business is registered as an LLC or a corporation, your personal assets are shielded from any liabilities that may arise from lawsuits connected with your business. But your company’s assets aren’t. That’s why general liability insurance for LLCs is considered such a critical component of business insurance.

 

These are the major types of events that are typically covered by a general liability policy:

 

Benefits of general liability insurance include protection from lawsuits and general liability claims, which is especially important for startup businesses. It also shows customers that you’re responsible and trustworthy.

 

You should keep in mind that general liability insurance does not cover damages or lawsuits associated with workers’ compensation, or professional liability and errors and omissions insurance; separate policies are needed for these coverages. Find out how to get liability insurance.