Insurance for Startups
Launch with confidence. Get essential insurance coverage designed specifically for startups and early-stage companies.
Why Startups Need Insurance
Many founders think insurance can wait until they're profitable or have significant revenue. The truth is, you need protection from day one. One lawsuit, cyber attack, or data breach can end your startup before it takes off.
Fast Fact
Many investors, clients, and landlords require proof of insurance before working with you. Don't lose opportunities over missing coverage.
Essential Coverage for Startups
General Liability Insurance
Protection against third-party claims of bodily injury, property damage, and advertising injury. This is the foundation of your insurance program.
Starting at $500/year • Usually required by clients and landlords
Professional Liability (E&O)
Critical for service-based startups. Covers claims of negligence, mistakes, or failure to deliver promised services.
Starting at $500/year • Essential for consultants, agencies, and SaaS
Cyber Liability Insurance
Protects against data breaches, ransomware, and cyber attacks. Non-negotiable for any startup handling customer data.
Starting at $1,000/year • Required for businesses handling PII or payment data
Workers Compensation
Required by law in most states if you have employees. Covers medical costs and lost wages for work-related injuries.
Varies by state • Mandatory once you hire employees
Directors & Officers (D&O)
Protects founders and board members from lawsuits alleging mismanagement. Investors often require this before funding.
Starting at $2,000/year • Critical before raising venture capital
Insurance by Startup Type
🚀 SaaS & Tech Startups
🛍️ E-commerce Startups
💼 Consulting & Services
Common Startup Insurance Mistakes
❌ Waiting Too Long
"We'll get insurance once we have revenue." One early lawsuit can bankrupt your startup. Get covered before you launch.
❌ Under-Insuring
Choosing the lowest limits to save money. A single claim exceeding your coverage limits means you pay the difference out of pocket.
❌ Relying Only on General Liability
General liability doesn't cover professional mistakes, cyber attacks, or employment issues. You need multiple policies.
❌ Not Reading Exclusions
Assuming you're covered for everything. Always review what's NOT covered in your policy.
When to Buy Insurance
Before Launch
Get general liability before signing your first client or lease.
When Handling Data
Add cyber liability as soon as you collect customer information.
Before Hiring
Get workers comp before your first employee starts work (required by law).
Before Fundraising
Add D&O insurance before raising institutional capital or adding outside board members.
Cost Overview
Here's what typical startup insurance costs look like in the first year:
Minimum Coverage Package
$1,500 - $3,000/year
General + Professional Liability
Comprehensive Package
$5,000 - $10,000/year
GL + E&O + Cyber + D&O
Many insurers offer startup-friendly monthly payment plans
Quick Tips for Startup Founders
- ✓Bundle policies (BOP - Business Owner's Policy) to save 15-25%
- ✓Review coverage annually as your business grows and changes
- ✓Get certificates of insurance ready before client meetings
- ✓Ask about startup-specific discounts and programs
- ✓Consider pay-as-you-go workers comp to manage cash flow
Get Your Quote
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What coverage level do you need?
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