What Kind of Insurance Does My Start-Up Need?
During the exciting formation phase of a company, taking out insurance could easily be forgotten. Especially in this phase, however, insurance is very important because you can concentrate again on the rest only if you have sufficient security. There is, however, plenty to choose from, and you soon ask yourself what insurance makes sense and what does not.
Social Insurance? Depending on the Legal Form.
Basically, companies need two types of insurance. On the one hand, it is social insurance such as old age and survivors’ insurance/disability insurance or accident insurance, which safeguards the owner and employees, and on the other hand business insurance policies, which are predominantly used to cover a number of companies’ operational risks. Whether a company owner needs social insurance depends on the legal form: in limited liability and public limited liability companies, company owners are also employed, so they are obliged to take out social insurance. For sole proprietorships as well as general and limited partnerships, things look differently, as it is their self-employed owners who have to look after their pension mostly themselves. The absence of an entrepreneur due to his or her illness or accident, however, could have disastrous financial consequences for his or her company, which should be covered by paid sick leave and accident insurance. On the other hand, however, in limited liability and public limited liability companies entrepreneurs are employed, so they have to take out social insurance.
Business insurance? Depending on the Industry.
The choice of business insurance is generally left to the discretion of the company owner, who decides his- or herself against what risks his or her company should be insured. However, it cannot be said across the board which ones makes sense because, depending on a company’s industry, its risks may be completely different. In addition, there is plenty of business insurance policies to choose from.
What makes sense in most companies, however, is business liability insurance, which can cover operational, investment or product risks. Operational risk insurance protects against damage that may be caused by business processes within the company. Investment risks are deemed to be damage arising from the ownership or rental of commercial properties. A good example here is a falling roof tile. Product risks include the poor workmanship of products, such as a badly soldered ladder step.
In addition, you can insure your property, both immovable and movable such as goods, equipment, tools or motor vehicles. In most cases it covers natural hazards, fire, burglary and glass breakage. A special insurance coverage of technical facilities provides particular protection for expensive and vulnerable machinery, equipment and instruments.
Another business insurance is business interruption insurance, which protects you against costs you could incur in case of an unexpected interruption of your operations. It is particularly worthwhile for companies that cannot diversify their production capabilities.
And What Insurance Does My Start-Up Need?
With so many insurance solutions on offer, you can quickly lose track. If you would like to know what insurance makes sense in your industry or whether or not your company is sufficiently insured, please use AXA insurance check. Furthermore, AXA Winterthur will help your start-up take out two insurance policies for your newly formed company, with even as much as 500 Swiss francs in incorporation costs being refunded.
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