Just released: How to raise venture capital in 2023

Download

Errors and Omissions Risks Checklist for Startups

TL:DR

Key Takeaways

Carl Niedbala - Founder Shield
Carl Niedbala

Managing Partner; COO & Co-Founder

We track down Errors and Omissions (E&O) policies for the majority of the companies we work with.  It’s extremely important coverage for anyone leveraging technology or social media, which most startups constantly do.   Even using things as simple as AWS or Facebook login can expose your company to a lawsuit,  and in a fast-paced, interconnected tech world that simply doesn’t accept any product failure, E&O-related lawsuits happen more than you might think.

Depending on where startups stand with regards to their risk management practices, the time to secure an E&O policy and the pricing of that policy can vary greatly.  This is due to the complexities of underwriting companies (like startups) that are usually a hybrid several different tech and non-tech functions.  And while startups usually can’t (and shouldn’t) have their own legal department, Chief Security Officer, or accept risk management consultant(s), there are some pretty basic things that can be done to mitigate certain risks and legitimize/secure your company.

That’s why we’ve developed a short but useful Errors and Omissions Risks Checklist that’s catered towards tech startups. You can download it here. The list isn’t supposed to be exhaustive, but it is supposed to give you an idea of practices or policies you may want to change and when you may want to get a second opinion on things (from outside counsel, for example). It touches on contracts, quality control procedures, IP practices, and IT/network security. By reviewing errors and omissions examples, you can better understand the types of risks you face. Limiting your exposure to risk in these areas will make your company stronger and ensure the best possible pricing on an E&O policy.

Go ahead and check it out to see how you’re doing on the E&O risk management front!

Download your Errors and Omissions Risk Checklist Here.

Related Articles

Cloud computing
April 16 • Risk Management

Cloud Computing Insurance Guide: How Secure Is Your Data In the Cloud?

How secure is your data in the cloud? Cloud security, compliance, and insurance: Essential strategies for cloud computing companies to mitigate risks.

crypto regulatory challenges
April 9 • Risk Management

Navigating Crypto Regulatory Challenges: Key Insights for Stakeholders

While crypto regulatory challenges require careful consideration, the funding market remains resilient. Our expertise can help you navigate these complexities.

investment risk management crypto
April 2 • Risk Management

Investment Risk Management for Crypto Companies Seeking Funding: A Guide

Crypto fundraising remains strong despite volatility, with early-stage valuations soaring. Learn about strategic risk management for crypto companies and how to navigate the evolving landscape.

ecommerce live social shopping 1
February 26 • Risk Management

Level Up Your E-Commerce With Live Social Shopping: A Go-To Guide

Live social shopping is changing the face of e-commerce. Discover the benefits, risks, and best practices for success in this emerging trend.

February 19 • Risk Management

Protecting Decentralized Exchanges: A Comprehensive Guide to DeFi Risk Management

This post explores emerging risks DEX companies face along with actionable tips for smart DeFi risk management, from vital insurance policies to best industry practices.

AI washing insurance claims
December 3 • Errors & Omissions

AI Washing Insurance Claims — A Call for Transparency

AI washing insurance claims are on the rise. Why? Companies that overstate their use of AI to mislead consumers and investors often face legal issues, reputational damage, and financial losses for both the companies and their customers.