This policy protects startups from the basic risks of working with clients and customers, such as slip-and-fall injuries. It may be required by a client contract or a commercial lease.
E&O covers the cost of lawsuits filed by clients or customers that accuse your startup of an error or oversight. It's also called professional liability insurance.
A cyber liability policy helps startups recover from cyberattacks and data breaches. It’s strongly recommended for any business that handles credit card numbers or other sensitive data.
A BOP combines two types of insurance at a discount: general liability coverage and commercial property insurance. Small low-risk startups are typically eligible.
Most states require startups with employees to purchase workers' compensation insurance. It also protects sole proprietors from work-related medical expenses that health insurance could deny.
This policy helps pay for accidents involving a vehicle owned by your startup. State laws usually require it for business-owned vehicles.
EPLI insurance coverage helps pay for legal expenses when an employee sues over discrimination, harassment, wrongful termination, or similar employment issues.
D&O insurance covers lawsuits related to decisions made by directors, officers, and board members on behalf of your company, including lawsuits from dissatisfied investors.
This policy, also called errors and omissions insurance (E&O), protects small businesses that provide professional services or advice. It covers lawsuits related to work performance.
Sometimes a startup needs insurance to work with a client or comply with the law. When you're insured, your clients gain peace of mind knowing that your business can handle a lawsuit, so any issues won't escalate to affect them. You can also ask clients to include you as an additional insured on their policy.
You may need a commercial insurance policy to:
Get funding. Some venture capital firms require startups to have D&O coverage before receiving funding.
Comply with the law. Vehicles registered to a startup must be covered by commercial auto insurance. If you use your personal car for business, a hired and non-owned auto insurance (HNOA) policy may also be an option for you. As soon as you hire your first employee, you'll likely need workers' compensation to comply with the laws in your state.
Startups can save money on insurance with two packages common in the IT industry.
A BOP combines commercial property insurance and general liability insurance.
A general liability insurance policy is the coverage that most small business owners purchase first. It covers basic third-party (non-employee) liability claims, including bodily injury and property damage. The policy is especially beneficial for startups that invite the public into an office or storefront, handle delicate client equipment, or have an active social media presence.
Commercial property insurance is critical for protecting your work equipment and your building, if you own it. This policy is valuable even if you’re renting an office space, as your landlord’s policy won’t cover your company’s belongings.
Tech E&O combines E&O and cyber liability insurance.
This policy is crucial for startups in the tech industry and professional services, as it covers the cost of lawsuits over the quality of your work, including any security recommendations. It bundles E&O insurance with both forms of cyber liability insurance:
First-party cyber liability insurance helps your business recover from a data breach or cyberattack. It covers expenses like the cost of credit monitoring services, crisis management, and cybersecurity incident investigations.
Thirty-party cyber liability insurance protects tech companies if a client sues you for failing to prevent a data breach or cyberattack at their business. If you find yourself in this kind of dispute, this covers your attorney's fees, settlement, court-ordered judgments, and other legal costs.
Chat with an insurance agent to find out more about bundles and discounts.
TechInsurance helps IT and tech business owners compare business insurance quotes with one easy online application. Start an application today to find the right policy at an affordable price, and get a certificate of insurance for your startup.