Insurance for startups
Most startups buy insurance because something requires it: a first hire, a funding round, a customer contract, a lease. Each of those calls for a different kind of coverage.
Cilantro Risk is an insurance broker for startups. We work out what you need now and what can wait, whether this is your first policy or a review as the company grows.
What usually prompts the call
Your first employees
Workers' compensation requirements depend on where each person works, so a remote team in several states means several sets of rules. Claims about how employees are treated, such as discrimination or wrongful termination, are covered separately by employment practices liability. We sort out both.
A funding round or new board member
Investors often ask for directors and officers insurance as part of a round, and new board members will want to know it's in place. Send us the financing documents and we'll match the requirement.
A customer contract
Larger customers usually spell out the insurance they expect: which coverages, how much, and what proof. Send us the insurance clause before you sign, and we'll tell you what it will take to comply.
A new product, location, or business model
A policy is written for the business you described when you bought it. If you start selling something new, handling new kinds of data, or working from a new place, tell us and we'll get it updated.
What each coverage is for
Professional liability and technology E&O
For claims that your product or service didn't work as promised and cost a customer money. It only applies to the services the policy describes, so we check that the description matches what you sell.
Cyber
For your own costs after a hack or data breach, such as investigation, notification, and downtime, and for claims from customers and others who were affected.
Directors and officers liability
For claims against founders, officers, and the board over how the company was run, for example from investors. It is separate from whether the product worked.
Employment practices and workers' compensation
Employment practices liability is for claims such as discrimination, harassment, or wrongful termination. Workers' compensation is for employees who are hurt or become ill because of their work. Both come up once you hire.
General liability, property, and product risks
General liability is for injuries to other people and damage to their property. Property insurance is for your own equipment and space. If you make or sell a physical product, product liability belongs on the list as well.
Not every startup needs all of these. We tell you which apply to your business. What a policy covers always depends on its terms and exclusions.
For general background, see the SBA's launch guide, including business insurance and Travelers' technology insurance overview. They are general guides, not advice for your business.
When a customer asks for insurance
A customer's insurance requirement tells you what they want to see. It doesn't tell you whether the policy fits your business. Send us the actual clause, not a summary, and we'll check:
- Which coverages and limits the contract names
- Whether the customer wants to be added as an additional insured, or asks for other specific terms
- Whether the policy describes the product or service you deliver
- What proof of insurance they need, and by when
What to send us
- What you do: a plain description of the product or service and who uses it.
- How you operate: entities, locations, headcount, revenue, and the data or equipment you rely on.
- What's changing: hiring, fundraising, a new customer, a launch, or a renewal.
- What you've been asked for: contract clauses, investor requests, deadlines, and any current policies.
Common startup insurance questions
Does every startup need the same policies?
No. A software company, a consultancy, and a hardware maker face different risks. What you sell, who you sell to, and where your people work decide what you need.
Are technology E&O and cyber the same thing?
No. Technology E&O is for claims that your product or service failed a customer. Cyber is for data breaches and security incidents. They're often sold together, but they are separate coverages with separate terms.
Can we talk to Cilantro before we have any insurance?
Yes. Tell us what you're building and what's prompting the question. If you have a policy already, send it over. If not, we'll start from scratch.
For investment businesses
If your startup manages money or gives investment advice, you'll need coverage designed for that as well. We arrange that too.
Browse all guides
Talk to us about your startup
Tell us what you're building and what put insurance on your list: a hire, a funding round, a contract, or a renewal.