Do I Need Insurance for My Business?


Bay Area business owners face many financial decisions every day. Any one of these decisions can seriously impact a company’s financial risk and legal liability. With appropriate insurance coverage, these losses can be mitigated. Yet over-coverage can result in valuable profits being wasted on unnecessary insurance premiums. New business owners should consult with an experienced startup attorney to determine what specific risks they face, and the specific insurance coverage that will most efficiently protect their assets.

The Different Types of Insurance Coverage Business Owners Should Consider

There are many different types of insurance coverage available to Bay Area business owners. Property coverage can protect specific tangible company assets, such as heavy equipment, company vehicles, or real estate held by the business. Liability coverage is available, and it can be tailored to specific areas of liability. For example, company vehicles are subject to state minimum liability insurance coverage laws. But, unsafe conditions on company premises can also result in liability to the company if such conditions result in injuries to employees or customers. Professional liability can also result from the services of certain licensed professionals, such as accountants, doctors, and lawyers – it is important for these professional service industries to  protect their business by getting insurance.

Finally, it is prudent for any individual, business, family, government, or legal entity in the Bay Area to insure itself against the natural disasters which are unfortunately common in the area. Earthquakes have been known to cause serious damage in the Bay Area. In recent years, devastating wildfires have destroyed millions of dollars of property across Northern California. These and other disasters can be insured through policies which cover force majeure events (“acts of god”, or natural disasters).

The Benefits of Being Appropriately Insured

For many business owners, insurance premiums can be cost-prohibitive. Yet the investment of insurance premiums has financial benefits beyond the insurance coverage itself. Appropriate insurance coverage may actually reduce a risk rating, or provide businesses with programs and information which enable them to reduce their risk rating, and in turn, reduce insurance premiums. Insurance coverage may also improve a company’s access to funding. When assets are protected, investors are protected, and this makes it easier to find investors and other funding options.

It is important that business owners select those coverage which are appropriate for their specific needs. By consulting with a Bay Area startup company agttorney, business owners can select the types and levels of insurance coverage which are best suited to their business needs.

Experienced Corporate Attorneys to Meet All Your Business Formation Needs

At Startup Company Counsel, our experienced corporate attorneys help you build a successful business from the ground up. Schedule a consultation today by calling (855) 353-5377, emailing, or submitting a request through our online contact form. In addition to our counsel to businesses on the right business insurance providers, we help new business owners file appropriate formation paperwork, access financing, ensure compliance with legal regulations, and meet other needs in order to allow the uninterrupted process of profitable business operations

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