Entrepreneurship and the Importance of Business Insurance

Every business startup begins with a dream. A dream that grows into something greater than itself, backed by passionate team members, sufficient funding, and the necessity of the service it provides. No matter how much of these things your startup may have however, it is not untouchable or infallible. The future is impossible to predict, so measures must be taken to secure the future of your grand idea. Business insurance is exactly the service you need to ensure the safety of yourself, your employees, and your business to ensure it remains successful no matter what.

Before you take your first steps into the world of business it is important to know what kind of insurance is right for your company’s security, as having the right policy can mean the difference between success and bankruptcy no matter how secure your company may be.

Types of Business Insurance and What They Cover:
General Liability:
This is arguably the most important type of insurance a company can have. General liability coverage protects your company and all its members from legal claims of physical injury and property damage. In the case of the latter, your landlord might open a case over broken equipment in a rented space or other, more drastic cases. The former covers cases of injury that may occur on the premises of your office or store. If a customer trips in your office and becomes hurt enough to sue, general liability will protect you and your company. Additionally, general liability covers copyright infringement cases. If any other business believes you to have unfairly taken their intellectual property, general liability will protect you. This also covers reputation damage that may be done by one of your employees. As a whole, if any legal case is brought against you, general liability will cover the cost of an attorney, medical expenses, awards for the plaintiff, and any investigation that may be necessary.
Professional Liability
Similar to general liability, professional liability covers your business if it is providing a professional service. All services, physical and non-physical, provided by your company that may damage or hurt the customer receiving them can be grounds for a lawsuit. This type of insurance covers the specific legal fees needed in those cases and protects your company wherever possible.
Product Liability
If your company produces and provides products to customers, this insurance is for you. If your product causes any physical harm, product liability covers you in the case of legal action.
Workers Compensation
This is one of the most widely known form of business insurance. It is also required by law to be provided by any company who employs workers to do any kind of work. If any of your employees are injured or become sick due to workplace conditions, workers compensation will cover their medical bills as well as any salary they might be missing out on because of the injury or illness. Any legal cases built around injury or death of an employee are covered by this policy.
Business Property
This insurance policy covers equipment repair costs that may not be covered under general liability. This also covers expenses in the case of a fire or other occurrence that might destroy valuable equipment.
Business Interruption
Business interruption is one of the lesser known policies that insurance provides. In the event of a natural disaster that prevents you or your employees from working, any loss of income will be covered by business interruption. This allows workers to still receive salaries and your business to remain functional in the event of large-scale natural disasters.
Business Auto
If your startup requires the use of company cars or other automobiles, this policy will cover any accidents that may occur while employees are driving on the job.


The most important part of the insurance process is making sure the services are right for you and your company. Different agencies such as the Desalvo Agency provide different services and serve different areas as well. Every startup is different and requires different services, so be sure that you have what you need before you spread your wings and make a name for you and your company in the world of business.

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