Starting a business in 2025 is exciting — but protecting it from the start is even more important. Business insurance helps shield your company from lawsuits, property damage, data breaches, and unexpected losses. At TaxMagic, we guide startups on building a strong insurance foundation so they can focus on growth without fear.
Start with basic protection by purchasing general liability insurance.
Every startup should begin with general liability insurance. It covers third-party injuries, property damage, and legal fees if someone sues your business. Whether you operate from home or an office, TaxMagic recommends this coverage as a first line of defense.
Don’t Skip Professional Liability Insurance
Professional liability insurance, often known as errors and omissions insurance, is necessary if you offer services or advice. It safeguards you in the event that a customer alleges that your service resulted in loss of money. For consultants, designers, or agencies, TaxMagic strongly suggests adding this to your insurance mix.
Consider a Business Owner’s Policy (BOP)
Many startups benefit from bundling coverages with a Business Owner’s Policy. A BOP includes general liability, property insurance, and often business interruption insurance — all in one plan. It’s affordable and covers common startup risks. At TaxMagic, we help business owners find customizable BOP options.
Protect Your Team with Workers’ Compensation
Once you hire employees, workers’ compensation insurance becomes mandatory in most states It pays for missed income and medical costs in the event that an employee is hurt at work. Even remote teams need it in some cases. Let TaxMagic help you comply with state-specific rules.
Safeguard Online Operations with Cyber Insurance
Startups frequently use digital platforms and cloud resources. That makes cyber insurance a must. It covers data breaches, hacking, and ransomware attacks. If you collect customer data or run e-commerce, TaxMagic recommends cyber protection early in your business journey.
Purchase Commercial Auto Insurance
If You Drive a Car You need commercial auto insurance if your company owns or uses cars.
It covers accidents, vehicle damage, and liability from business-related driving. Even if employees use their personal cars, you may need hired and non-owned auto insurance. We at TaxMagic help you choose the right auto coverage based on your needs.
Plan Ahead with Business Interruption Insurance
Unexpected events like natural disasters, fires, or pandemics can pause your operations. Business interruption insurance replaces lost income and helps with ongoing expenses during downtime. TaxMagic recommends this for startups relying on physical locations or inventory.
Understand Industry-Specific Coverage
Different startups face different risks. A tech company may need technology errors insurance, while a restaurant might need liquor liability insurance. At TaxMagic, we assess your industry and advise you on tailored policies so you’re never underinsured.
Check State Requirements Before Launch
Each state has different business insurance laws. Before you launch, make sure you’re compliant with minimum insurance standards — especially for workers’ comp, commercial auto, and business licenses. TaxMagic helps you navigate these legal requirements with ease.
Review and Update Your Policies Regularly
As your startup grows, your risks change. Annual reviews of your insurance policies help you avoid gaps. Whether you hire more employees, add services, or move locations, TaxMagic ensures your coverage always matches your current operations.
