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New tech startups are emerging regularly, as newcomers aim to deliver superior products and services to private individuals and businesses by harnessing the power of technology. For startup owners geared towards long-term growth and expansion, it is crucial to protect your organization against potential risks and reduce risk exposure by having the right insurance policies in place. With suitable insurance covers, tech startup companies can enjoy a smooth flow of operations and peace of mind knowing their business can withstand unfortunate events, lawsuits, and many more. 

Business owner policy

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A business owner policy (BOP) merges general liability insurance and commercial property insurance. It is known to be a cost-effective option that most tech startup companies subscribe to. This policy protects small-sized tech companies from fire, lawsuits, theft, among others. 

Cyber liability insurance 

Cyber liability insurance offers protection from financial losses caused by a data breach and other cyber-related incidents. This insurance coverage features first-party coverage that helps protect from losses caused by a startup company directly. Moreover, it includes third-party cyber liability insurance that offers protection against damages resulting from neglect or failure to deliver adequate security and protection to clients. 

Cyber liability insurance is a necessity for startup companies that heavily rely on online services where the chances of cyber-attacks and data breaches are high. If you are looking to protect the confidential information of your business, including your earnings and other sensitive information, cyber liability is one of the first insurance policies that you must obtain. 

Property insurance 

A property insurance policy delivers protection for a tech company’s physical assets, such as buildings and inventory, against eventualities like strong winds, hail storms, fire, smoke, vandalism, and many more. A good property insurance policy encompasses all business assets, whether owned or leased. 

E&O insurance

Errors and omissions insurance, also known as professional liability insurance, is a type of liability insurance that offers protection for tech startup companies and their employees from claims made by clients for unsatisfactory work and unintentional mistakes. Simply put, errors and omissions insurance protect a tech startup against a wide range of liabilities that relate to the professional services they render. 

If your tech company primarily offers services to clients, an errors and omissions insurance policy is a requirement. It will be beneficial for companies to obtain this type of insurance policy even if the law does not require it.  


It can be challenging to find suitable insurance policies for first-time tech entrepreneurs. Not all insurance providers can offer you the best type of insurance policy coverage or bundled insurance coverages that a tech company will need. As your business grows, it is imperative to reassess your situation and revise your insurance based on your current needs. Furthermore, it is the responsibility of business owners to keep their insurance policies updated to ensure optimum protection against old and new risks. Always bear in mind that a single mistake can result in lawsuits that can cause significant financial losses to your profitable business.

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