Insurance FAQs

What insurance do venture-backed startups typically need?

Venture backed startups often see insurance needs come up earlier than other businesses, mainly because of investor expectations and enterprise contract requirements. Directors and officers insurance is often requested around or after a funding round, especially if the company is adding a board or independent directors. Professional indemnity, sometimes described as errors and omissions, is also commonly required in customer contracts, particularly for SaaS and technology services. Cyber insurance is often expected if you store customer data, process sensitive information, or connect into client systems. Employment practices liability becomes more relevant as headcount grows and hiring increases, because the risk of employment related claims generally rises with the size of the team. Example: After raising a Seed or Series A round, investors may ask the company to put directors and officers insurance in place as part of improving governance and meeting common board expectations.

What insurance do startups need in Australia?

What insurance a startup needs in Australia depends on what you build, who you sell to, and what your contracts require. A SaaS business selling to corporates will often be asked for different cover to a hardware startup selling physical products.

What information is needed to place a specialty insurance risk?

Insurers usually need a clear picture of what you do and what could go wrong, so they can decide whether they want to offer terms and on what conditions. It is recommended to share information early, because a complete and accurate submission can reduce delays and limit back and forth questions.