We work hard to start a company. No matter how hard we try, or how good we are, bad things can happen. Unexpected things. We share the responsibility for those things by getting an insurance policy.
It’s never too early to get insurance for the business. Even if incorporated as an LLC there are limits to the protection. Even if not charging for products, we can still be liable for damages occurred in their use. The answer for this is usually errors and omissions insurance. E&O insurance, as we end up calling it to shorten things is a liability insurance that protects the company and the people that work at the company against lawsuits over negligence or other liability claims.
To read the rest of my article on getting started with an insurance policy, see: https://www.bootstrappers.mn/post/getting-our-first-insurance-policy