Insurance for FamTech & BabyTech

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Overview

Innovative technology has teamed with parents to make the family experience more positive (and easier!). Formerly known as BabyTech, this industry has made leaps and bounds for several years, focusing on families rather than merely the baby-to-toddler timeframe.

FamTech is a rapidly growing market, too. In 2019, the US BabyTech market size was nearly $46 billion, with no signs of slowing down. One unique trait about this industry is that many companies are blazing trails regarding marketing. In FamTech, more than any other market, founders are successful launching a content-first strategy instead of releasing products first. It’s a trend-setting approach that has undoubtedly paid off.

Companies facing litigation

90

%

Roughly 90% of US companies face litigation at some point in their lifecycle. Many of these lawsuits surround inaccessible websites and copyright infringement issues.

Data Breach Costs

$4

m

The average total cost of a data breach in 2020 was $3.86 million and the average cost per individual record that was lost was $150 (IBM).

Why is Insurance for FamTech & BabyTech Organizations Important?

Notably, FamTech companies create a more parent-friendly work environment. It’s a shame that the US isn’t traditionally a comfortable place to work and parent simultaneously — but it’s not.

The FamTech industry helps parents find more comfortable and natural ways to parent successfully, instead of the traditional “go it alone and burnout” route.

That said, Millennials are the generation with young families and new standards on the parenting experience. With 93% of Millennials owning smartphones, FamTech is developing to serve and uphold this group’s tech-savvy demands.

Parents need a new strategy to wear multiple hats successfully, and the FamTech industry aims to help lighten the loads for families. With well-suited insurance policies, FamTech companies can protect themselves from any legal issues and keep a sturdy foot in the game of longevity.

Cybersecurity

Connecting parents to essential resources typically involves collecting personal data. Unfortunately, this information makes FamTech companies more vulnerable to cyber attacks. Globally, data breaches cost companies an average of nearly $4 million. Some of the most common threats are data breaches using ransomware, malware, phishing, and denial of service.

Product failure

Even the best, most well-thought-out products flop sometimes. After all, over 30,000 new products are rolled out each year, and 95% of them fail. Connectivity, software bugs, and ill-timed launches can quickly put a wrench in hopes and dreams. FamTech companies tread on even thinner ice than most businesses because they focus on children and babies. Having a safety net for these situations is a must.

Content Accuracy

FamTech companies rely heavily on content marketing to gain and entertain a customer base. As mentioned, many of these businesses take the content-first as opposed to a product-first approach to marketing. So, accurate content is crucial to keeping paying customers around — but one inaccurate bit of information could mean costly lawsuits and loss of revenue from loyal customers.

Business Interruption

Data breaches, system failures, and other cyber issues can cause FamTech operations to come to a screeching halt. Controlling every contributing factor to these downtimes isn’t possible; however, committing to a recovery plan is feasible. It’s always an excellent idea to review how costly an interruption in business would be and to develop a way to navigate any losses.

FamTech Insurance Frequently Asked Questions

The cost of insurance for FamTech companies 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
  • Number of users on the platform
  • Claims history: the type and amount of past claims against the company

Types of FamTech Companies that need insurance

  • Baby gadgets and devices
  • Health monitor companies
  • Personalized baby products
  • Meal delivery programs
  • Childcare management Services
  • Pediatric Testing Solutions
  • Pediatric home care services
  • Online learning platforms for parents
  • Nutritional food products for children
  • Breastfeeding support platforms

How it works

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

1
Get a quote

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

1
Get a quote

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

2
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.

2
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.

3
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 of your industry, proactively ensuring you’re covered.

3
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 of your industry, proactively ensuring you’re covered.

Jonathan Selby, General Manager

Meet your specialist

Jonathan spent the first 5 years of his professional insurance career working as a generalist broker at a traditional firm on Long Island.  Intrigued by the notion of how technology can be leveraged in the industry, Jonathan joined the Founder Shield team in early 2016 as an Account Executive, and quickly grew into his current leadership role of General Manager.  He 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, Jonathan can be found on the basketball court and chess board (…but not at the same time.)

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