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Insurance for IoT Companies

A newer concept, the “Internet of Things,” is based on daily-life objects that are connected to the Internet. These include your smart homes, fitness trackers, home appliances, and much more.

With any IOT devices that retain your data or connect you to the rest of the world, risk assessment is necessary as liabilities are involved. Smart devices are the future, but you need to keep risk prevention in mind before indulging in IoT technologies.

Considering all the data security threats, internet of things insurance is a way of risk mitigation. At Founder Shield, our insurance executives have stepped away from the traditional insurance business model to create one that fits the IoT business models for our insurance customers.

Industry Overview

IoT technology seems to be hidden in plain sight. The market is built of smart devices or products in our daily lives, whether in personal, professional, or industrial settings.

IoT’s digital initiatives includes physical objects that offer data collection, real-time communication, and connectivity over the Internet. These can be wearable devices that collect your data, security devices that assess the environment using new technologies such as heat and gas sensors, or even daily appliances that use your data to bring you convenience. 

Considering the widespread use of IoT technology, it’s no surprise the market stands at a $320.9 Billion USD value in 2022. Additionally, it is predicted to hit $1,562.35 Billion USD by 2032, making it one of the fastest-growing sectors in the near future.

Insurance companies have seen a growing demand for IoT business insurance due to the rising cases of breached cyber security systems.

In our tech-based era, an individual’s data privacy is a high-value commodity. Hence, data management and risk coverage are hot topics. If your company faces any data breaches or other cyber security risks, you or your IoT business partners can come under great legal strains. 

Why is Insurance for
IoT Companies Important?

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Mitigate Business Risks

All businesses should possess insurance services catered to their industry. Having IoT-specific business insurance will help mitigate all basic risks that come with running a company, keeping in mind how the industry operates. Many insurance companies fail to protect IoT businesses due to their limited insurance plans.

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Support Your Cyber Security

Cyber security is a leading risk in the IoT industry. Hence, an ironclad Cyber Liability plan is a necessity. IoT customer data is sensitive and a lack of data security can land your company in hot waters. So, the best way to fight off claims and recover from damages is with the help of the right coverage.

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Decrease Potential Financial Losses

IoT data management is much harder than it appears, and setbacks can have devastating results for your businesses. Your core asset is an insurance plan with the right funds, to help you fight off litigation, recover data/losses, and protect your company’s image without exhausting your personal or professional financial assets.

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Protect Your Company

In the IoT industry, the main threats to your business are virtual. That can include but isn’t limited to cyber security attacks, online libel from competitors, or fraudulent claims. Having IoT business insurance helps keep your company protected and hold miscreants responsible.

IoT Companies Insurance
Coverage & Policies

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

general liability
General Liability Insurance Learn More
General Liability Insurance

This policy covers potential claims arising from bodily injury, property damage, and personal/advertising injury. Given that IoT devices often have physical components and are used in diverse environments, accidents or malfunctions could cause harm or damage, making this coverage essential for IoT companies.

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Workers’ Compensation Learn More
Workers’ Compensation

This insurance addresses costs associated with injuries or illnesses employees sustain while on the job. Even in tech-driven environments like IoT companies, there are risks, such as repetitive strain from device assembly or office-based injuries, necessitating this coverage.

Employment Practices Liability Learn More
Employment Practices Liability

This insurance protects against claims from employees related to issues like wrongful termination, discrimination, or harassment. As IoT companies expand and diversify, they might face personnel challenges or disputes that can lead to such claims.

Internet of Things Specific
Insurance Coverage

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

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Directors and Officers Learn More
Directors and Officers

This policy covers the leadership of a company against legal claims arising from their decisions and actions in a corporate role. In the fast-paced and evolving IoT sector, company leaders might face increased scrutiny, especially around privacy and device security decisions.

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Errors and Omissions Learn More
Errors and Omissions

This policy is for claims resulting from professional errors or oversights causing financial losses to clients. IoT companies, which create devices and software that clients depend on, could inadvertently introduce flaws or vulnerabilities, making this insurance vital.

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Cyber Liability Learn More
Cyber Liability

This covers potential losses from cyber threats like data breaches or cyberattacks. IoT companies, with their interconnected devices, represent a vast and often vulnerable network, making them prime targets for cyber threats and emphasizing the need for robust cyber coverage.


This insurance is for losses associated with criminal actions like fraud, theft, or forgery. Given the valuable data IoT companies handle, they may be vulnerable to both internal malfeasance and external criminal actions, highlighting the importance of this coverage.

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Digital Asset Learn More
Digital Asset

This policy covers losses tied to digital assets such as cryptocurrencies or unique digital licenses. If an IoT company deals with, or develops, these types of assets, they would benefit from this protection, especially considering the volatility and unique risks associated with digital properties.

IoT Insurance Costs

IoT business insurance costs aren’t comparable to other industries. The IoT industry deals with sensitive data and has higher stakes involved, so old existing models don’t fit the requirement. Thus, finding the right IoT business insurance is vital.

You will receive a price estimate for your insurance policy based on the nature of your company. The size, number of employees, nature of product/services, etc., all goes into determining its total cost.

At Founder Shield, we provide competitive market prices for your business insurance needs. We’re also well-versed in the business models and related risks of the IoT industry.

IoT Insurance Frequently Asked
Questions (FAQ)

The cost of insurance for IoT 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

While there is no universal mandate for Internet of Things (IoT) insurance, certain sectors, contractual obligations, or regulatory bodies may stipulate its necessity. Given the vast network and connectivity in IoT, many businesses proactively seek this insurance to shield against potential vulnerabilities and threats.

The appropriate level of IoT insurance hinges on several factors, including the scale of your IoT operations, the criticality of devices in use, potential financial impact of a malfunction or breach, and the sensitivity of the data being processed. Conducting a comprehensive risk assessment is pivotal in determining the appropriate coverage.

To procure IoT insurance, approach insurance providers or brokers with expertise in tech and cyber risks. They will evaluate the unique exposures associated with your IoT operations and provide a tailored policy or package that aligns with your specific needs.

Business liability insurance is a foundational coverage that protects companies against potential financial losses resulting from claims of injury or damage caused to third parties, be it through the company’s operations, products, or on its premises.


Absolutely. IoT insurance policies can be adjusted to fit a company’s unique risk profile and requirements. This can include adjusting coverage limits, specifying certain inclusions or exclusions, and combining with other relevant insurance products. Collaboration with a seasoned insurance professional ensures the policy is tailored to your operational nuances.

IoT Insurance Quotes

Finding IoT 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 IoT 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 tech startups. We ensure that our products are tailored to meet the unique needs of IoT 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 IoT operations.

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Fast Quotes

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

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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 technology 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 Internet of Things 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.