Cloud-based Software Delivery · Commercial liability insurance

What insurance coverage do I need for a cloud-based enterprise SaaS startup?


October 13th, 2017

I am launching an enterprise SaaS product in the legal services industry and have my initial client. The product will manage an important internal legal process for enterprises. I am curious for any advice on what insurance I need and the appropriate levels of coverage. I am a solo founder with no employees yet and only a subcontracted resource for the software development work.

My research seems to suggest: General liability insurance, E&O insurance, and cyber liability insurance. Are those the right policies or do I need a different mix? Any thoughts on how I figure out the right coverage levels?

Any insight would be greatly appreciated.

Greg Duplessie Looking for Sales and Marketing help and advice

October 13th, 2017

I have a SaaS business as well and recently got a quote for General Liability, E&O, Cyber and Key Man - from They seem to have a good handle on how to deal with businesses like ours.

Karl Sawyer Founder in stealth start up mode for insurtech firm. Experienced in insurance and risk management.

Last updated on October 17th, 2017

CAs you are offering advice or a service you would require professional indemnity. This would cover you for claims against whether successful or not against negligence under contract. This should include some provision for cyber related issues such as malware. You may also want cyber coverage to protect you against costs arising from breach and also from extended downtime caused by server damage/failure. This more difficult to get but protects your cashflow. Dependent on which country you are operating in you may Yrequire other statutory covers.

Craig Lillard Serial Founder/Bootstrapper of Video Related Startups. Currently Growing

October 13th, 2017


Well, this is a tough one. In theory you need the basic types of business insurance, primarily General Liability although I am not really sure how much it is going to help you in a SAAS business.

I founded an online media marketplace and found that it was VERY difficult to find anyone to insure it for the types of insurance we really needed which would protect us in case of a hack or lost data, etc.

The time, however, to get insurance if it is to be had is now, however as you are doing. Now, before you put all the systems into place will be the time you will be more likely to be able to get an insurance company to insure you.

Not all tech businesses can easily be insured. However, when you go to sell the business, you will be asked whether or not you have insurance, so you are doing the right thing by trying to make it happen.

There are a few companies that specialize in startup/tech insurance. But they are often expensive. Seems like I remember Hiscox is one that has some tech/startup options. Unfortunately, local insurance agents seldom know much about any of this. :( I would reach out to one of the bigger companies to see if they can point you in the right direction.