A Sensible Order for a Startup’s First Insurance Policies

A startup can receive an insurance checklist from an investor, a landlord, an enterprise customer and an employee, all in the same week. Buying every available policy is rarely practical. Buying only the cheapest certificate can be just as unhelpful.

Prioritise the events that could stop the company, breach a contract or create a liability larger than the balance sheet can absorb.

Begin with people, property and promises

Map employee benefits and statutory needs, physical assets and premises, professional commitments to customers, data exposure and founder or board responsibilities. Customer contracts often set limits or coverage types that affect the sequence.

Let milestones trigger the next review

Funding, the first enterprise contract, international sales, a larger office, a formal board, hardware inventory and rapid hiring can each change the answer.

• Keep a register of insurance clauses in contracts.
• Assign one owner for applications and renewal data.
• Report material product or service changes during the year.
• Budget for deductibles as well as premiums.

One last thought

The best early insurance programme is not the biggest one. It is the one that matches today’s real exposures and has a clear plan for tomorrow’s.

Coverage, exclusions, limits and claim requirements vary by insurer and policy. Read the customer information sheet and policy wording before you buy or renew.