A startup insurance broker will almost always recommend that a business carry a general liability policy. While this is a good idea for nearly all companies, it's especially important for a startup. There are four situations that are common at startups and may require a general liability policy.

Advertising Injury

Whenever a company promotes its products or services, there's a risk that the claims may injure other parties. In the startup sphere, competitors may argue that your claims injured their products, services, or brands.

Suppose a new cloud computing firm stated that its services are two times faster than a specific competitor's offerings. That competitor might fight back on the basis of an advertising injury. Effectively, the competitor would argue that it lost business due to unsubstantiated claims about the quality of its services.

While you'd stand a good chance of prevailing in court against such a case, the cost of counsel could be enough to sink your company while you're winning. In fact, aggressive incumbents in some industries sue just to slam startups with legal costs. A general liability insurance policy can shield your firm from both legal expenses and a potential settlement.


Many startups lease office space, warehouses, and other facilities. If your company has no history as a tenant, there's a good chance its prospective landlords will want documentation of an insurance policy before allowing you to move in. A startup insurance broker services firm can hook you up with a general liability policy to appease your company's landlords.

Third-Party Injuries

People will come and go from your business even if you don't think of it as a public-facing operation. Startups often take prospective investors on tours of their offices and facilities. If one of the visitors suffers a slip-and-fall injury because a janitor forgot to put out a wet floor sign, your company could be on the hook for hundreds of thousands or even millions of dollars in damages.

Digital Accessibility

Even if you don't think of your business as fundamentally digital, it likely will have some public-facing digital systems. Websites and apps are among the most common. ADA-based claims are increasing in frequency. These claims center on a company's failure to make digital resources accessible in ways that are compliant with the Americans with Disabilities Act. For example, you might face a claim that your e-commerce site didn't have sufficient accommodations for people with severe eyesight impairments.

Contact a company like Fullsteam Insurance to learn more.