Insurance for start up app?

rhimlrhiml Posts: 1subscriber
edited May 2015 in Business Planning
Hi everyone,

I hope this finds you all well. I was hoping to get some advice from a few people with regards to how important you feel it is to make sure you have insurance in place for when you launch your product (professional indemnity, 3rd party liability etc.).

Obviously insurance is a large cost to incur if you are not creating any revenue yet. On the other hand, we are maneuvering through a delicate landscape here and any claims that we are not covered on could spell the end before the beginning?

What are your views?

Many thanks

Ross

Comments

  • sumpalarmsumpalarm Posts: 0subscriber
    Ross,

    We are facing the same decision. We are debating between pulling general liability insurance and completed products insurance vs not, and relying on our "corporate firewall". Regrettably, I think we are going to decide to go the route of insurance.

    We have two motives for wanting to have a policy.
    1) Some of the customers we have begun to approach have a requirement for general liability insurance.
    2) In the event someone ever were to make a claim that they were injured or their property was injured due to one of our products, we want an insurance company to be the first line of defense.

    The insurance is pricey. We have been shopping for it for months. The premiums are as much as our profit for the year, however we are growing by 200-400% per year. We decided last year on a volume number (sales level) where we would pull the trigger on it, and we are approaching that point.

    What's interesting is that there is so little information and resources on the topic. It would be great to have more specific information on product liability insurance "completed products" and to have some guidance on "be sure your policy covers... x,y,z."

    We are going old school on this one and effectively reading and comparing the policies.

    Hope this helps...

    Scott
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