Should You Buy Startup Insurance?

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Most Startups Fail by Year 5

Startups are very risky. According to recent government research, most startups fail by year 5.  I therefore strongly recommend that you purchase startup insurance.

Startup Failure Rates
% Startups remaining in business over time. Consolidated from multiple sources.

Source: 2010, US Bureau of Labor Statistics, US Census Link

Insure against 12 of These 13 Failures

Here is an edited list of the top 13 causes of failure as reported in a recent issue of Forbes:

  1. A Small Idea
  2. Wrong Market
  3. No Go-To-Market-Strategy
  4. No Focus
  5. Lack of  Flexibility
  6. No Passion
  7. Bad Leadership
  8. Unmotivated Team
  9. No Mentors
  10. No Revenue Model
  11. Running out of Capital
  12. No Roadmap
  13. Bad Luck

Call Your Broker Now

Startup insurance provides complete protection for all of these contingencies except #4 No Focus. So call your broker today and ask for some competitive quotes.  (ED. NOTE: Startup insurance is not available in all 50 states) Alternatively, you can reduce your risk of startup failure by joining an accelerator, like say…… Flashstarts.

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