There are tons things to think about when starting your business. Business plans, securing financing, cash flow analysis, inventory, employees (this one is always scary)…the list can go on forever. Don’t forget to think a little bit about your vulnerabilities. It’s a valuable exercise for many (maybe most) startup companies to make a list of their projected liabilities (read “weak spots” or “worst case scenarios”) to determine where the soft underbelly is. Find the holes and then think about closing them with insurance coverage.

Here’s an example, if you’re on the road often for your work, you probably want to think about insurance to protect against claims against your company for damages and situations in excess of normal coverage. If you have employees driving for work, this becomes mandatory.

Life insurance 

When it comes to business transactions, many financial professionals are using insurance based tools you might not be aware are available. Using life insurance policies to protect the value that key personnel bring to a business can be an amazing option in today’s information and skill based economy.

  • What if the design partner in a tech startup dies suddenly, leaving his managerial or sales oriented partner alone?
  • What if the head of a successful company dies  just prior to a structured buyout? Is the company’s valuation the same without him? Will the deal survive?

Believe it or not, there are insurance products and policies that focus on these problems.

Zane Frisbie is a Partner at Regan & Frisbie, PLLC, a law firm focusing on Wills, Trusts, Probate, Contracts, Business Formations (LLC, Corporation, S-Corp Designation), Business Disputes,

Regan & Frisbie, PLLC is located at 5850 Town & Country Blvd, Suite 501, Frisco, Texas 75034.

Comments or questions, feel free to email him at or call him at 469.200.4737.

*Nothing in this Article is to be considered as the rendering of legal advice for specific cases, or creating an attorney-client relationship, and readers are responsible for obtaining such advice from their own legal counsel. This article is intended for educational and informational purposes only, and no warranty or representation is made as to the accuracy or completeness of the information contained herein.

Your email address will not be published. Required fields are marked *