Startups came to the business world to stay, this business model broke with traditional schemes and is positioned in the market. Just as they are driven also have their risks, hence it is essential to hire an insurance company. Before using an comparator to find a policy for your company you have to read this.
A study presented in 2018 by Startup Ecosystem Overview showed that Spain is the third country that European entrepreneurs prefer to start their businesses and the fifth internationally. Taking these data into account, insurance companies today offer attractive policies that adapt to the needs of these ventures.
They are businesses that are just born and begin to develop. That is why the safeguarding of their assets is fundamental, but what happens when the budget is reduced and we cannot hire a wide coverage policy.
In this post we offer you a guide on how to spend less and choose an insurance that covers exactly what you need in your startup.
what is startup insurance?
The first thing you should know is that a startup insurance should not have a big difference in relation to policies designed for other types of companies. Internal and external structures are threats to both small and large companies.
The difference is that insurers usually use a broader risk map when it comes to startups, in them it is taken into account:
-People risk. This includes employees, customers and third parties;
-Claims from customers and third parties;
-Facility, machinery and technological risk;
-Commercial defaults;
-Company structure.
What you should consider when buying startup insurance
We are already clear that it is important for a startup to have insurance, but there are so many on the market that it can be overwhelming to decide on the one that best suits your needs. These are the aspects you should take into account that, in addition to allowing you to hire the right one, will help you save money:
-Determine what risks the business runs and the impact it would have on the development of your small business if one of these unforeseen events were to occur.
-Consider insuring as many contingencies as possible so that long-term concerns are lessened.
-Check the insurance offers very well. Sometimes there are proposals with very attractive payments but that do not adapt to your needs. So be suspicious and read even the fine print.
-Before contracting, check the largest number of insurances available in the market.
-Consider getting advice from an insurance broker, you will not have to pay more and he will offer you valuable information according to what your company really needs.
-You can also use an comparator online to find the best insurances.
What a good startup insurance should have
If you have a company under this business modality, surely you have already used a comparator to find the best insurance. However, here are some of the features it should have:
-It is essential that you have Civil Liability Insurance, Temporary Leave of Absence Insurance and Office Insurance.
-It must value the intensity of the risk and not the positioning that your startup has in the market.
-It is essential to cover technological risks. Take into account that today almost everything is digitalized and cyber-attacks can cause considerable damage to a company.
-It must have a good coverage to protect the facilities and the people who work in it.
Remember that every startup has different needs, so in order to save money and at the same time have a wide coverage it is essential that you know your market very well.
