Anyone who has started a business knows that there are lots of risks involved from the start. Startups require much research and development as money and reputation are on the line.

Liability and property are also at risk when getting that small business going. No matter what business you are starting, you will need to cover the risks involved. 

So, here are five ways you can get the best business insurance for your startup:

1. Analyze the possible risks your insurance may have. Create a list of any possible risks, no matter how small, that your business has. Questions you may want to ask: How many employees will you hire? What types of jobs will they be doing? Is there any travel involved? What physical activity will they be performing in their jobs? What types of equipment will they be using? What is the likelihood of you being sued? Are they selling any products? What risks are involved with these products? These are just a few questions you should consider. Also, are you an architect or a baker? This is truly the beginning of planning how you need to be insured. 

2. What types of business insurance coverage should you purchase? Just like property and casualty insurance, businesses have a variety of insurance coverages they can get that will cover their risks. Business Property Insurance covers equipment, assets, inventory, and other property. It can cover everything from computers to products. General Liability Insurance is the basic and broad coverage for property, medical costs, bodily injury, and lawsuits. Health Insurance is easily the most expensive of costs, for all full-time employees. Worker’s Compensation covers employees on the job injuries. It pays for lost wages, medical costs, and time off. 

3. The search for the right insurance for your business. Once you have determined your needs for business insurance, the search begins! You can do it yourself by going online and checking out the different coverages offered by both local and national insurance agencies. Create a spreadsheet and see which offers the best coverage for your type of business. You can also utilize your current insurance agent who can look into the available coverages through their own company. Lastly, you can hire an insurance broker. An insurance broker sells, solicits or negotiates insurance on behalf of their client for compensation. They are different from an insurance agent in that they act on behalf of a client by negotiating with multiple insurers.

4. Compare the different business insurance coverage quotes. Since not all coverage is alike, the same goes for premiums. Some insurance companies offer discounts for bundling policies or for minimizing risks (installing ramps, fire extinguishers, etc.) which can help you save money on your premium. So, compare the different quotes that you get. Even though all insurance coverage and premiums are regulated in Maryland, you may still be able to save money based on the availability of discounts that are allowed. Shop and save! ***

5. Buy it! Now that you have done the research and determined the type of business insurance you need and the premiums you can afford, sign the contract. Congratulations, as you have now covered the risks associated with your industry. We wish you much success! 

Lindquist Insurance can help. We offer business insurance for startups. Contact our licensed and experienced insurance agents at (301) 694-0008 for a free consultation. 

We serve the Frederick, MD, and Annapolis, MD areas.   

*** You can find out more about Maryland Insurance Premiums at the State of Maryland website .