6 Ways tech startups can save money on business insurance

January 31, 2022

Ways for tech startups to save money

Saving money is crucial when you’re growing a small tech startup. You’re focused on growing your userbase while trying to maximize your profits. Anything you can do to save cash will help you stay in business longer.

If you’re not in the insurance business, the term “business insurance” probably conjures images of policies with lots of complex jargon that only accountants can decipher. Here’s the truth: There are ways tech startups can save money by sidestepping high-cost policies and being smart to lower the cost of business insurance.

How to make the most out of business insurance as a tech startup

It’s worth trying to bring down the cost of your business insurance. Probably business insurance is not the first thing that came to your but it’s absolutely essential. Let’s look at a few ways you’ll be able to save cash easily.

Use coworking spaces

When you try to get insurance for small businesses, it usually covers office buildings. But you don’t need to rent office space if you work from a laptop. Just sign up with the most popular coworking space in your city.

If you’re building a tech startup with friends, you can sit together when you’re working. You’ll be able to rent a room for the day if you need privacy. It means you won’t be responsible for the building where you work.

You can wait a while

Do you have employees you need to protect? Are you going to be offering a product to customers right now? When tech entrepreneurs are starting out, they spend time working on a product before it’s ever launched to the public.

You might be able to wait a while before getting insurance. If you’re sitting on your own in a coffee shop, you’re just a person messing with code. Once it becomes an actual business, you’ll need to get good insurance and probably some legal advice.

Hire remote workers

If you have employees, they must be insured in case something goes wrong. Luckily, you don’t need to have your employees in a traditional office, when you run an internet business. It’s possible to hire remote workers from anywhere in the world.

Communication isn’t a problem because people write code in the same language, but you can find employees from many countries that speak English. However, wait until you’re successful with a few clients before hiring full-time employees.

Low monthly premiums

It’s probably okay to choose lower monthly premiums for the first few years. I know you’ll pay a higher deductible if you need to make a claim, but what’s likely to go wrong? Consider taking the risk if possible.

Back everything up in multiple places in case you’re the victim of a cyber attack. Don’t buy the equipment you can’t afford to lose. It shouldn’t cost much anyway because you won’t need things like contractor liability coverage.

Live with your friends

Friends always live together in tiny apartments in Silicon Valley to save money. Sometimes you need to do anything to succeed. If you’re starting a tech company based in Miami with co-founders, it might be worth living the same way. Consider taking a look at these apartments for rent in Miami and you might find the rental that suits you and your friends’ lifestyle.

The amount of money you’ll spend on renter’s insurance isn’t going to hurt, and you won’t need additional insurance for an office. You won’t even need to spend money on a coworking space if you work from home.

Save like your life depends on it

Do you want to become a tech billionaire within the next decade? Successful people do everything they can to save money, so start following in their footsteps today. Make sure that you have the right habits when it comes to money management and budgeting. Remember, running a business is a marathon, not a sprint.

Conclusion

Taking the first step to market is always a hard one. Although owning a business has its benefits – be sure that it will get tough along the way. Plan ahead to avoid potential business mistakes, keep your expenses as minimal as possible and become a money-saving nerd.

More must-read stories from Enterprise League:

Related Articles