Insurance is necessary to protect you and your customers. Although insurance may sometimes seem like an unnecessary expense for a young business, it should be a requirement for startups. You may not need it during the customer discovery phase, but once you are working with employees, customers, and/or investors then insurance helps you to protect and grow.
There are a number of different types of insurance that you might consider at different phases of your business. You can review the different types of insurance and learn about when you might need to consider them on the FounderShield website.
A few options for startup insurance providers include: The Hartford, Hiscox, CNA, State Farm, and Embroker. While you can go straight to the insurance companies you will find that they often attempt to sell you insurance coverage that you may not need at your stage of development. As an alternative, you may consider working with a broker who can shop around on your behalf.
Note that while you may not believe you need business insurance, sometimes your customers may require that you do, if you were to send staff on site to work with their people either to deliver a service, do training, or do field repair of your equipment that is deployed to their sites. If that is the case, you may be able to get a waiver, however sometimes they will require you to provide proof of coverage. This can put a delay on the amount of time it will take to close a deal, or to deliver a product or service to a new customer. This is another reason to look into getting at least an affordable small business insurance plan for your startup.