We know that as a tech start up, you’re going to have a lot on your plate. In this competitive industry, you’ve got to graft and come up with something unique in order to make yourself stand out, so those will likely be your priorities. However, something that should also be right up there on your priority list is sorting your insurance.
Moving forward without insurance, particularly once you have an employee or customers/clients, is asking for trouble, as the last thing you want is to end up in a situation that puts your startup at risk that could have been avoided with insurance. So, set some time aside to sort out insurance and one day it could save your tech startup.
Cyber Liability Insurance
There are different types of cyber liability insurance, however one thing is for sure as a tech startup, and that is that you need it. Whilst cyber security software can try to protects your business from a range of threats in the digital age, whether its cyber attacks, data breaches or anything in between, sometimes they can’t be avoided, and that’s where cyber liability insurance comes in, to help cover any financial loss as a result, as well as sometimes things like legal fees associated with being sued as a result of a data breach. It goes without saying that of course this is necessary for any tech business, as they’re so data driven. Even if you think you have the strongest protection against cyber scams, unfortunately they’re getting more and more advanced by the day, so you never know what is around the corner. As a tech startup, this is one of the most important forms of insurance you can have.
Professional Indemnity
For any business, but especially startups, another type of insurance you need is professional indemnity. This type of insurance protects businesses against liability claims that their customers may put in. This could be anything from a small oversight to a major error, but usually refers to claims that a client has suffered as a result of inadequate service. As a startup, you’re not going to have the experience to have everything absolutely perfect and figured out straight away, and oversights will be likely to occur. So, this insurance covers you if you or a member of your team makes a mistake that results in a claim being put forward by someone. Even the most experienced businesses should have professional indemnity insurance, as it only takes one disgruntled employee or an innocent mistake to potentially result in a lawsuit that could destroy your business. This simply isn’t a risk that is worth taking.
Key Man Insurance
Another really important type of insurance is key man insurance. This provides financial cover if someone who is essential to your business, such as an owner or director, becomes ill, dies or cannot work, causing damage to the business. This could be paying off debts caused by the absence of the key person, covering salaries or even recruitment costs. As a startup, there will likely be a handful or less of people who are really important to the business, and so if it couldn’t function without them and you’ve taken on a lot of investment, or even any investment at all, and could potentially have bills that couldn’t be paid if a key person wasn’t present, then you need key man insurance.