Distributed Companies Must Respect Local Regulations
Posted: Wed Feb 19, 2025 9:55 am
It’s not enough to consider where your company is registered and the location of your office. As a startup, your business is likely distributed and you have remote workers on your payroll.
Depending on local regulations in your states and countries, you may have to pay a different premium from one employee to another. This has a direct impact on workers' compensation insurance, whose average rates range from $0.75 to $2.74 per $100 of payroll in the United States alone.
Since insurance laws differ from state to state and country to country, you may have to offer completely different policies. This is the only drawback of a remote team (which we strongly support, however).
But that doesn't mean your founding team has to spend hours buried in legal documents. You can turn to an EDP service to sort out these issues. The extra work and risk of not complying with regulations aren't worth it.
We cover all the standard business insurance policies you may need and your average costs. We even give you some estimates based on our experience.
Remember that your company's real insurance needs and costs aren't something you can figure out just by reading a blog post. This is especially true for distributed businesses with full-time employees bosnia and herzegovina phone number data around the world.
Summary
If you're a sole proprietor working out of a home office or coworking space, and the most sensitive information you store digitally is email addresses, a $40-50 per month general liability policy is probably the only insurance you'll need.
But if you store credit card information or advise on large contracts for tech companies, the most expensive part of your startup's insurance portfolio will likely be cyber liability insurance.
While covering every part of your business can cost you a few thousand dollars a year, a single data breach can cost you $86,500 or more. And if a glitch in your software causes a few days of lost productivity at a large company, that figure pales in comparison.
Startups are just as vulnerable to these types of events as traditional companies, so it is essential to protect your business and assets from worst-case scenarios.
Depending on local regulations in your states and countries, you may have to pay a different premium from one employee to another. This has a direct impact on workers' compensation insurance, whose average rates range from $0.75 to $2.74 per $100 of payroll in the United States alone.
Since insurance laws differ from state to state and country to country, you may have to offer completely different policies. This is the only drawback of a remote team (which we strongly support, however).
But that doesn't mean your founding team has to spend hours buried in legal documents. You can turn to an EDP service to sort out these issues. The extra work and risk of not complying with regulations aren't worth it.
We cover all the standard business insurance policies you may need and your average costs. We even give you some estimates based on our experience.
Remember that your company's real insurance needs and costs aren't something you can figure out just by reading a blog post. This is especially true for distributed businesses with full-time employees bosnia and herzegovina phone number data around the world.
Summary
If you're a sole proprietor working out of a home office or coworking space, and the most sensitive information you store digitally is email addresses, a $40-50 per month general liability policy is probably the only insurance you'll need.
But if you store credit card information or advise on large contracts for tech companies, the most expensive part of your startup's insurance portfolio will likely be cyber liability insurance.
While covering every part of your business can cost you a few thousand dollars a year, a single data breach can cost you $86,500 or more. And if a glitch in your software causes a few days of lost productivity at a large company, that figure pales in comparison.
Startups are just as vulnerable to these types of events as traditional companies, so it is essential to protect your business and assets from worst-case scenarios.