Startup creators do not insure their new businesses. On the other hand insurance companies have not prepared any offers which meet the expectations and needs of this specific business segment.
This situation could be due to the way startups are managed. Young entrepreneurs usually focus on searching for investors, improving their ideas, brand promotions and selling an application. So young businessmen prepare business plans on the basis of a short prospect. They have not thought about eventual risks and damages.
Insurers also are not willing to offer insurance cover for this business segment. Policies for SMEs may be inadequate for startups because of the new companies’ activities and risk scope. For insurers entering the startup insurance market is very risky.
