expert series feb. 2012: globalex insurance considerations for startups
DESCRIPTION
Insurance Considerations for Startups covers why and when starups need insurance, and what types of insurance they should be looing for. This is a Lead to Win Expert Series Presentation, held on Feb 29, 2012 in Ottawa, ON.TRANSCRIPT
Insurance Considerations
for Startups
Presented by
February 29, 2012
• Property • Commercial General Liability • Product Liability• Errors & Omissions Liability• Intellectual Property Liability• Directors & Officers Liability• Workers Compensation• Partnership - Life• Key Man Insurance• Group Benefits• And more...
Insurance available to Startups
R&D
Office LeaseTradeshows
Hiring Employees
Commercialization
Outside Investors
Inventory
Company Valuation
Outsourcing
Startups need insurance
Why and When?
Exposure• Limited exposures• Prototypes
Insurance• Often no insurance in place• If working from home, homeowner insurer
might require Commercial General Liability
Research & Development
Exposure • Contractual lease requirements
Insurance• Commercial General Liability Insurance• Property Insurance
Office Lease and Tradeshows
Exposure• Attracting and retaining personnel• Loss of key personel
Insurance• Group benefits• Workers Compensation insurance• Keyman insurance
Hiring Employees
Exposure• Product and/or services exposure• Meeting contractual requirements• Increase client confidence
Insurance• Product Liability• Errors & Omissions/Professional Liability
Commercialization
Exposure • Higher property values• Property at third party locations
Insurance• Business interruption• Increased property values• Property in transit
Inventory
Exposure• Negligence or error by subcontractors• Loss at sucontractor location
Insurance• Verifying insurance carried by subcontractors• Being added as Additional Insured• Property in transit• Business interruption from loss at
subcontractor
Outsourcing
Exposure• Protect their investment• Financial impairment• Mismanagement• Employment practices
Insurance• Directors & Officers Liability Insurance• Review of insurance program
Outside Investors
Exposure• Death or disability of a shareholder• Third party suit
Insurance• Partnership insurance (life insurance)• Review of coverage and levels of insurance• Intellectual Property insurance
Increase of Company Valuation
Contracts
Non-Insurance Considerations
Recommended Language– Limitation of liabilities– Indemnification Agreement / Hold Harmless– Arbitration Clause – Disclaimer of Warranties – Force Majeure – Performance and Scope – Term and Termination – Governing Law
Your first line of defence before insurance responds
Neil Moloney, Partner613-226-8185 x.252
Serge Paquette, BCom613-226-8185 x.244
www.globalex.com
Thank You