Is your startup getting ready to launch? Congratulations on your first step. You’re in for a fun time.
You’re in good company too. Thousands of people start new businesses every year.
There are things you need to watch out for though. Liability is one of those.
Below are five types of liability you need to prepare your startup for.
1. Co-Founder Trouble
If you’re a sole-founder, you can avoid this problem. But more often than not, we have a co-founder working with us to start a business.
Things usually start out fine, but that doesn’t mean they will stay that way. Make sure you have a contract in place for when this happens.
You need to account for every situation.
- Who owns what?
- What happens if one partner leaves?
- What happens during a disagreement?
When you prepare for these issues beforehand, you can handle them better in the future.
2. Worker Safety
If you plan to bring on employees, you need to provide a safe work environment for them. Things might be safe enough for you, but you can’t predict what will happen to other people.
Make sure you keep your office free of potential hazards. One of the most common issues are slip and falls. Keep your walkways clear to avoid this.
You will need to buy workers compensation insurance to help with this. Without it, you will be facing legal trouble if an accident happens.
Make sure you learn more about safety skills to get ready for potential safety problems.
3. Property Damage
If you own a home, you know the benefits of home insurance. This doesn’t change if you own a commercial property.
You need to be careful of property damage at your business. If you go without any insurance, you’re going to be paying for things out of pocket.
Make sure you buy coverage that covers any situation.
4. Product Liability
If you sell any products, you need to make sure they’re safe. That doesn’t always happen, though.
Sometimes accidents happen. You need to have product liability insurance for when this happens.
Product liability insurance will protect you in these cases. Your insurance will be customized based on the type of products you sell. You’ll need to talk with an insurance provider to learn what you need.
5. Business Interruption Insurance
It doesn’t matter how much you prepare. Sometimes problems come up that make it impossible for you to do business.
You can lose power, the internet, and phone service. In cases like this, business interruption insurance can help.
This insurance will compensate your business for situations like this.
Make Sure You Learn About Types of Liability
Running a startup is hard enough on its own. The last thing you want to do is expose yourself to liability that you could have avoided.
Learn about the types of liability you’re at risk for in your business so you can take steps to prepare for it.
Are you looking for more advice on getting your business running? Head to our blog to read our latest business advice.