Insurance for Startups

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Overview

Entrepreneurship has never been more popular than it is right now. Roughly 627,000 new businesses open each year, making startups a relevant topic for nearly every industry. Startups help drive our economy and spur on innovation globally. Hard-working individuals give their blood, sweat, and tears to bring their ideas to life.

Strangely enough, 595,000 businesses close each year — and more in tough times. For example, more than 200,000 extras closures occurred in 2020 due to the global pandemic. Some of these companies were startups, while others were long-time organizations. On a good note, the pandemic also gave courage to individuals who’d always considered entrepreneurship a pipe dream. More startups are thriving now than ever before — and we hope to keep it that way.

Why is Insurance for Tech Companies Important?

Insurance works to protect your company, employees and professional growth. However, it can be difficult to know what insurance your startup needs. Some policies are required by law while others are required by investors. There might be policies that you’ve never even heard of!

Insurance is an investment, not merely a cost. A well-placed policy frees up your time, energy, and money to focus on growing your business. But the lives of founders and startups can be chaotic — sometimes insurance becomes more of a “check-the-box” activity.

When used properly, insurance policies provide value to companies that goes well beyond what a “set it and forget it” approach provides. If you’re investing in the stock market, do you buy a couple shares and then just ignore them? No, chances are you monitor your investments, tailor them as your needs. Besides, goals change, so it only makes sense to work with an advisor who can help you along the way.

Aside from meeting certain legal and compliance requirements, here are a couple important benefits startups enjoy when they have the right insurance coverage:

  • Attract Investors – investors do everything in their power to eliminate risk from the equation. One of the ways they do this is by requiring companies to get certain types of insurance coverage.
  • Keep Customers Happy – many of your customers will demand it proof of insurance, particularly if you’re in the B2B space.
  • Hire Top Talent – as you grow, so does your risk exposure.
  • Scale – as you grow so does your risk exposure. Having right coverage in place will give you peace of mind and time to focus on scaling your business.
  • Disrupt– when you’re taking on entire industries and shaking up the status quo, something’s bound to go wrong. Someone’s probably going to sue you at some point. Whether the danger is coming from competitors or regulators, you’ll have a black hole of time-wasting paperwork and legal fees on your plate if you don’t have the right insurance in place.
Product Risk

Entrepreneurs are often heavily invested in their product, and roll them out to the open market with pride. However, why do some products flop while others make their mark on the world? Consider the risk your product faces as you release it to the public.

Market Risk

Consider how your product fits into the market. Is there enough market appetite, or does it take massive persuasion to move your product? Are you missing any blind spots? The market has a unique ebb and flow, trending parallel with social fads and movements. Startups must know their market like the back of their hand.

Financial Risk

Most entrepreneurs are more than willing to give their blood, sweat, and tears to their endeavor — but what about money? If you hit a roadblock with the new business, how will you financially recover? What’s your plan if someone sues you? How will you secure funding for growth?Examine your financial risk from multiple angles to ensure adequate protection.

Human Risk

Startups often begin with one or two people jotting down ideas onto a crumpled up napkin in a retro burger joint. And one person can successfully launch and maintain a business for a while. When the time comes to grow, though, how will you handle hiring employees, keeping them happy and safe?

Types of Startup Companies that need insurance

  • Saas
  • Ecommerce
  • Media and Advertising
  • Healthcare & Biotech
  • Manafacturing
  • Fintech
  • On- Demand
  • Professional Services
  • Real Estate
  • Venture Capital

Startups Frequently Asked Questions

The cost of insurance for startup 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
  • Claims history: the type and amount of past claims against the company

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.

Rachel Jenkins, Customer Success Manager

Meet your specialist

Rachel is one of the premier leading insurance professionals with almost 10 years of experience in the industry. She has been with the Founder Shield team for several years, focusing on client advising and improving policy language for venture-backed companies including financial institutions, Ecommerce, and SaaS companies.

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