Founder Stories: What I Wish I Knew About Business Insurance Before Launching

Introduction

‍When you’re starting a business, insurance often feels like an afterthought. Founders naturally focus on revenue, products, or staffing, not liability risks or policy gaps. But as the stories below show, overlooking coverage can cost far more than expected.

Whether you’re a startup founder, consultant, or small business owner, these real-life lessons highlight what to watch out for and how the right coverage can protect what you’re building.

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Real Lessons from the Field

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“I assumed the landlord’s insurance covered everything.”‍

A first-time retail owner thought their shop was protected under the building owner’s policy. When a pipe burst and ruined inventory, they learned too late that they needed their own Business Property coverage.

• Lesson: Always ask what your landlord’s policy actually covers, and secure your own protection for equipment, inventory, and income loss.

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“I only had General Liability. I didn’t realize that wasn’t enough.”‍

A solo consultant ran into trouble when a client accused them of negligence. Their General Liability policy didn’t cover professional mistakes, leaving them on the hook for costly legal fees.

• Lesson: If you offer advice or services, consider Professional Liability (E&O). It covers risks that General Liability does not.
  
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“My employee got into an accident during a delivery, using their own car.”‍

A small catering business sent a driver on a quick delivery in their personal vehicle. When an accident happened, the business was still pulled into the claim and didn’t have Hired and Non-Owned Auto (HNOA) coverage.

• Lesson: Even if you don’t own company cars, you could still be liable. HNOA coverage fills that gap.

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Stories like these make one thing clear: even small coverage gaps can create big problems for a business.

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Why It Matters

Insurance isn’t just paperwork, it’s your safety net when things go wrong. These founders learned the hard way that small oversights can lead to:

• Thousands in unexpected costs
• Operational delays or shutdowns
• Damage to client trust and reputation

By understanding coverage before there’s a problem, you stay in control and not just reactive.

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So who’s most at risk of running into these challenges?

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Who This Is For

This insight is especially valuable for:

• Founders launching their first business
• Consultants or service-based professionals
• Brick-and-mortar owners leasing a space
  
• Anyone with team members driving, delivering, or advising on the company’s behalf

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If you see yourself in one of these groups, here are a few questions worth asking before moving forward.

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What to Do Differently

You don’t need to be an insurance expert, but asking better questions can make all the difference:

• What’s actually covered under this policy, and what isn’t?
• Do I need anything beyond General Liability?
• Am I responsible for accidents involving employees or contractors?

A quick conversation with an AETOS advisor can help you identify blind spots and avoid the kind of regrets these founders now carry.

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By focusing on these questions early, you’ll avoid the missteps that caught other founders off guard.

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Final Thoughts

Launching a business takes courage. Protecting it takes clarity. These founder stories aren’t just cautionary tales, they’re reminders that the right protection keeps your business moving, even when things go sideways.

If you’re unsure what coverage fits your situation, talk to AETOS. We’ll help you move forward with clarity and confidence, not guesswork.