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Insurance for Cloud Computing Companies

Cloud computing is a modern-day requirement. By 2027, experts predict that more than 50% of companies will use industry cloud platforms to accelerate their business initiatives. While this shows promising opportunities for business leaders in the cloud computing industry, it also exposes them to several risks. Founder Shield’s insurance for cloud computing companies includes everything you need to run your company with peace of mind.

Industry Overview

According to industry research, global cloud technology is projected to reach $1,240.9 billion by the end of 2027, highlighting the growing demand and importance of cloud technologies in today’s business landscape.

While the industry booms, the financial impact of cyber attacks, data breaches, and system failures on cloud technology can be substantial. A recent study found that the average cost of a data breach for a cloud solutions provider is estimated to be around $3.92 million.

By investing in comprehensive insurance coverage, cloud systems providers can protect themselves from financial losses and demonstrate their commitment to data security while establishing trust with clients.

Why Is Insurance for
Cloud Computing Companies Important?

Cloud computing companies can leverage insurance to be protected against several risks, improve the efficiency of their business processes, and position themselves as credible within the industry.

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Financial Stability

Insurance companies provide financial protection against potential losses or damages that may occur due to cyber attacks, data breaches, or system failures. This can help cover the costs of legal fees, customer notifications, and business interruption.

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Enhancing Reputation and Credibility

Insurance companies can help enhance the reputation and credibility of cloud solutions. Having insurance coverage demonstrates a commitment to protecting customer data and mitigating risks, which can instill trust and confidence in clients.

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Protection against Lawsuits

Insurance can also cover errors and omissions, protecting companies that offer cloud solutions from potential lawsuits related to professional negligence or failure to deliver promised services. Insurance companies offer protection against lawsuits resulting from incidents, allowing businesses to focus on providing cloud services.

Compliance and Contract Requirements

Cloud providers are driving digital transformation, so they’re often subjected to data breaches. Therefore, many clients and business partners may require cloud computing companies to have insurance coverage as a condition of doing business or entering into contracts. Partnering with insurance companies ensures compliance with these requirements and helps companies maintain strong relationships with clients and partners.

Cloud Computing Insurance
Coverage & Policies

These coverages form the foundation of any risk management program for cloud computing companies:

general liability
General Liability Insurance Learn More
General Liability Insurance

This policy addresses claims of bodily injury, property damage, and personal/advertising injury that a business might cause to third parties. Cloud computing companies, while primarily digital, still have physical premises and interactions where such liabilities can arise, making this coverage relevant.

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Workers’ Compensation Learn More
Workers’ Compensation

This insurance addresses medical expenses and a portion of lost wages for employees who become injured or ill due to their job. Even in predominantly desk-based environments of cloud computing companies, risks such as repetitive strain injuries or office accidents can necessitate this coverage.

Employment Practices Liability Learn More
Employment Practices Liability

This coverage protects against claims from employees concerning wrongful termination, discrimination, harassment, or similar employment-related issues. As cloud computing companies grow and diversify, the potential for such internal disputes or claims increases.

Cloud Computing Specific
Insurance Coverage

These policies are essential for or can be tailored to the needs of companies operating in the cloud computing space:

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Directors and Officers Learn More
Directors and Officers

This policy safeguards company leaders against legal judgments and costs arising from their decisions and actions in their corporate roles. With the rapid evolution and high-stakes nature of the cloud computing sector, company executives might face heightened scrutiny, necessitating this coverage.

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Errors and Omissions Learn More
Errors and Omissions

This covers claims resulting from professional mistakes or negligence leading to a client’s financial loss. Cloud computing companies, providing services that clients heavily rely on, could inadvertently cause disruptions or losses, making this insurance critical.

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Cyber Liability Learn More
Cyber Liability

Tailored for losses from cyber threats like data breaches or cyberattacks, this is essential for cloud computing companies. Given they handle vast amounts of client data and ensure service continuity, they are prime targets for cyber threats.


This policy covers losses from criminal activities such as fraud, theft, or forgery. Cloud computing companies, given their digital focus, may be vulnerable to both internal and external fraudulent activities or malicious actors.

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Digital Asset Learn More
Digital Asset

Designed for losses tied to digital assets like cryptocurrencies or unique digital resources, cloud computing firms that deal in or handle such assets would require this protection, considering the digital nature and inherent volatility of these assets.

Cloud Computing Insurance Costs

The cost for a cloud-native company can vary among insurance carriers. At Founder Shield, the level of coverage needed and the specific risks involved are two important considerations when we’re computing the cost of your insurance.

Founder Shield’s experts know the nuances of the cloud computing industry and only offer a quote after assessing your business processes closely.

Cloud Computing Insurance Frequently Asked
Questions (FAQ)

The cost of insurance for cloud computing businesses will depend on several things, including the company’s size and development stage. Other factors include:

  • Exposures: risks being insured
  • Company practices: views on safety, compliance, and risk management
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

Cloud computing insurance is not mandated by law; however, businesses that rely on cloud services may opt for it to safeguard against potential financial losses stemming from data breaches, service interruptions, or other cloud-related risks.

The coverage amount for cloud computing insurance depends on your business’s size, the nature of data stored, the criticality of cloud services to your operations, and the potential financial impact of disruptions or breaches. It’s essential to evaluate these factors and consult with an insurance expert to determine the appropriate coverage.

To obtain cloud computing insurance, research and approach insurance providers or brokers that offer cyber or specialized cloud insurance. After assessing your business’s risk profile and needs, they’ll provide a quote tailored to your requirements.

Business liability insurance protects companies against financial losses resulting from claims of injury or damage caused to others—either through the company’s products, business operations, or property.


Absolutely. Cloud computing insurance policies can be tailored based on specific risks your business faces. Customizations might include adjusting coverage limits, adding or excluding specific events, or integrating with other cyber liability provisions. Engage with an insurance professional to ensure the policy meets your business’s unique needs.

Cloud Computing Insurance Quotes

Finding cloud computing insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined and intuitive as possible.

Get a quote

Use our custom-built digital platform to get quotes fast. We automate clerical tasks that plague traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

Stay one step ahead

To do better, you need to know better. With changing political, technological, legal, and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments in your industry, proactively ensuring you’re covered.

Jonathan Selby General Manager
Jonathan Selby, Tech Industry Specialist

Your Cloud Computing Insurance Specialist

Jonathan spent the first five years of his professional insurance career working as a generalist broker at a traditional firm on Long Island. Intrigued by how to leverage technology in the industry, he joined the Founder Shield team in 2016 and quickly grew into his current leadership role of General Manager. Jonathan works to oversee client strategy and communication, and has fostered a culture of providing unparalleled service and risk consulting for some of the fastest growing companies in the world. Outside of work, he can be found on the basketball court and chess board — but not at the same time.

Why Choose Founder Shield?

Founder Shield is a leading insurance provider that specializes in offering comprehensive coverage for technology companies, offering numerous benefits and advantages over traditional insurance providers. Here’s a breakdown of some of the key features and benefits that you’ll enjoy with us:

Benefits of Choosing Founder Shield:
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Industry Expertise

Founder Shield is focused on protecting rapidly evolving technology startups. We ensure that our products are tailored to meet the unique needs of cloud computing companies.

Customized Solutions

Founder Shield offers bespoke insurance policies that are designed specifically for each client’s needs, ensuring comprehensive coverage that addresses the unique risks associated with cloud computing operations.

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Fast Quotes

With Founder Shield’s streamlined quoting process, you can receive a personalized quote for your cloud computing insurance quickly, allowing you to make informed decisions quickly.

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Ease of Use

Founder Shield’s user-friendly digital platform makes it easy to manage your insurance policies, submit claims, and access important documents whenever you need them.

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Dedicated Support

Founder Shield provides exceptional customer service, with dedicated account managers who are always available to assist you with any questions or concerns you may have about your insurance coverage.

Scalable Coverage

As your tech business grows, Founder Shield’s insurance policies can grow with you, ensuring you always have the right level of coverage for your changing needs.

Founder Shield is a preferred choice for cloud computing businesses because of our specialization in the industry. We offer flexible and customized insurance policies, a speedy quoting process, and exceptional customer service with dedicated account managers.