Entrepreneurs (most of them) see insurance as a ‘cost’ that you can get away with. Let me remind them – insurance is an investment, not a cost for a startup.
Future is uncertain, and so are the associated risks. Businesses can’t predict a ‘disaster’. May be these risks are small or even affordable, but there is a good chance you are underestimating them. The chances of your business catching fire or getting hit by a flood are low, but can you imagine the disruption that it may cause?
A criminal act, calamity or anything minor can cause major disruption. Entrepreneurs leave the insurance phase for later, but I would suggest getting your startup insured as soon as your business is launched.
Many clients also ask for insurance details before they are prepared to do business with you. Public liability is important for many clients. It also helps you build credibility.
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Despite not being able to trade, you will still have to pay your staff, rent and other costs. You could lose a very significant amount of business or incur heavy costs while attempting to maintain it.