When you open a new business, you quickly realize that you spend most of the time “putting out fires,” rather than implementing the steps of your business plan. The chaos that typically defines a startup diverts your attention from building the business, and in doing so, opens up your business to additional risk. Lines of insurance for a startup business are multi-faceted. Some insurance coverages must be obtained as you open a business, while others can be purchased some time after the initial startup, as the need arises.

Each and every business differs. As such, certain insurance may not apply to your specific business. If you are looking for insurance for a startup business, consider the following types of insurance.

Types of Insurance Coverage

Key Man Insurance

Key man insurance insures the life of the business’ key person. For small businesses, the Key Man is typically a company founder or owner. Essentially the purpose is to insure those whose absence would likely lead to a company failure.

Business Insurance

Business insurance for a startup business allows you to protect your (the co-owners’ or the investors’) business investment. This insurance covers financial obligations to employees, should an accident happen.  Some commercial insurance remains optional; while others, like workers compensation, are mandatory in most states. Each state determines their own requirements.

Liability Insurance

Liability insurance protects your business from future claims against it. Claims include libel, slander, injuries or property damage. Similarly, you should consider Data Breach insurance to protect the business mishandling protected personal information.

Property Insurance

Property insurance covers the business’ physical assets and property. It covers damages resulting from man-made disasters and natural disasters as well – including weather events.

Workers’ Compensation Insurance

Most states mandate that businesses have worker’s compensation to cover their employees. This type of insurance pays wages and medical care for those hurt on the job in exchange for the employee agreeing not to sue their employer.   Unemployment insurance and state disability insurance are mandated by certain states.

Commercial Umbrella Insurance

Commercial Umbrella insurance protects your business from potentially damaging future lawsuits. Umbrella insurance kicks in when other insurance coverages reach their maximum limits.  Commercial Umbrella insurance coverage may also offer protection against liabilities that fall outside the limits of other commercial policies. 

Business Interruption/Continuation Insurance

Life and business are filled with unanticipated events that often impact business’ operations. Sometimes, these events can even suspend the operation of a business.  Business Interruption/Continuation Insurance assists in the replacement of business income, or the payment of financial obligations like weekly payroll or rental payments.


Roman Galey

What makes me who I am?

As I earn the honor of being my clients’ confidant, I champion their goals and navigate them through obstacles until we achieve their desired outcome.

Contact me to discuss all of your Risk Management and Insurance needs.

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