Entrepreneurs are risk-takers and risk-taking has its advantages as well as disadvantages. For starters, you’ll never get anywhere new if you’re don’t take a risk and many successful entrepreneurs owe their success to taking risks. However, if you take too big a risk, you stand to lose everything. Anyone who’s ever been an entrepreneur can tell you that. But there’s a secret to starting up as an entrepreneur without exposing yourself to the possibility of failure and minimizing the downside of risks, which also happens to be an entire industry built around that basic premise; insurance.

Being an entrepreneur can be an exciting life but it is not as easy as it seems. The day you begin to carve a business plan, you will realize you will have to go through many hardships with no guarantee of making profits or earning enough to even cover expenses – this is one of the major risks you will face. It takes unwavering will to become an entrepreneur, bear the unending risks and persevere enough to thrive amidst challenges but it is not an impossible thing to achieve. What you need is the ability to foresee the risks and planning and resources to manage those possible risks. And the age-old ultimate resource to mitigate risks related to businesses is insurance.

Although, having insurance coverage for your small business may seem like an unnecessary expense or an outright waste of money in the early days of your new company, the security it provides can potentially be invaluable. However, one type of insurance cannot suit every type of enterprise, neither can one kind of insurance help at every phase of business.

So what type of insurance should you buy for your startup? Here’s our fool-proof list.

1. General Liability

Every business needs general liability insurance. This type of insurance protects your company’s assets and pays for the legal fees and support that you’ll need should someone (i.e. customer, but not an employee) decide to sue you for damages while on your property or using your product. Of course, no one ever wants to get sued but unfortunately, business owners are sued all the time. It also covers copyright violations, slander, libel and protects your personal assets from customers and competitors.

2. Medical

Medical bills come big these days and can potentially put you out of business even if you’re a young, healthy entrepreneur. Don’t ever gamble on not having medical insurance. Sure, a common cold won’t set you back too much, but what if you break a bone, or have a more serious incident? Having a health insurance plan ensures your health costs get reduced and in the event of any health emergency, you won’t have to dig into your company purse to cover the bills for you, your team and family.

3. Property

Do you own a building? Or at least some computers? If you have a lease or own your business premises and any inventory necessary for running your business, having property coverage is a smart move. This insurance protects your personal property, computers, furniture and assets that may be critical to keeping your business running.

4. Commercial Auto

Is a car part of your business? Company cars, delivery vans, and shuttles all need commercial auto insurance. One big accident could fast track your personal assets to bankruptcy. Depending on the size of your vehicular fleet and how crucial it is to your business, choose between a third-party and comprehensive auto insurance coverage.

5. Life

Both you and your employees have families dependent on your business success. If you have loved ones that depend on your income and for you to put food on the table, you absolutely cannot ignore the need for life insurance, which is all the caring for your love ones would need in the event of long term incapacitation or untimely demise. Getting life or disability insurance covers ensures you have enough to take care of long term care and your loved ones can keep the roof over their head and food on the table when you’re not there.

In the competitive start-up world, even the shrewdest entrepreneurs with the latest and greatest gadgets can find themselves thrown unexpectedly into situations that could derail or blow up a dream before it gets off the ground. Part of running a business is putting the right tools in place to position yourself for long-term success, to protect the assets you’ve worked hard to build and offer peace of mind to loved ones. So think again before you put off insurance from your business plan.

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