Insurance Considerations for Startups

The following are types of insurance that startups and early stage companies should consider purchasing for purposes of risk management:

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• General Liability –  A good idea for any business to have in place.

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•  Cyber Tech E&O for Tech Companies - The exposure may not be huge depending on what personal info is being gathered but if the business is collecting personal data of any kind this protects against lawsuits related to errors or omissions in the app development work, including potential data breaches or cybersecurity issues that could arise from the applications.  

  

• Hired / Non-Owned Auto – If a founder is driving her own vehicle or renting vehicles (in which case she wouldn’t need to buy the rental co-insurance) to see customers, vendors, etc., this becomes more essential and can be included in the general liability policy.

 

• Property – Only needed if there is property for the business. 

 

• Employment Practices Liability – Only needed if there are employees in the business.

 

• Workers’ Comp – Only needed if there are employees in the business

 

• Directors & Officers – Only needed if there are outside investors in the business.