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For what type of business, or at what point in its progress, is insurance needed for a small startup?

Any person who is thinking of starting a new business or who has launched a start-up should immediately consider the types of insurance he or she will need, rather than considering if they need insurance at when just starting out.

If you have a business, protecting yourself at its birth will offer you the security and confidence you will need. It may also be required. Startups.co.uk recommends various kinds of insurance in their article, “Do you need professional indemnity insurance?”

Businesses that require insurance

Many professional businesses require insurance:
Accountants
Financial advisors
Health care providers
Check your state or licensing agency for requirements.

Types of insurance

Property: If you are leasing space and have equipment, you will need theft and fire insurance. Your landlord or leasing agent may require you to have it as well.

Professional liability: Health care providers are usually required to possess these policies. Lawyers are not required to have it, but some contract jobs, or those in which you will have a fiduciary responsibility to your clients, may require it. Even if they do not, you will want to be protected if your first client decides to sue you.

Liability: If you are providing any kind of service or product, liability insurance is essential. Many clients will ask if you have insurance and you may lose a contract for not having one. Liability insurance will also protect you from any injury claims.

Workers Compensation: This may depend on how many employees you have. Check your state laws for the minimum number.

Information and data contained in this post gathered in association with a North Carolina auto accident lawyer at Marcari, Russotto, Spencer & Balaban, P.C.