Startup Insurance Guide for Founders

Startup insurance is a stack of policies, not one policy.

The core stack for many tech startups is D&O, Cyber, Tech E&O, and CGL.

• EPLI becomes important as soon as you hire and start managing performance and terminations.

• HNOA is easy to miss and is often required even if you do not own vehicles.

• Fiduciary liability matters once you offer benefits like a 401(k).

• Media liability matters if you publish content at scale or operate a platform with content risk.

The fastest way to lose time is waiting until a contract signature or term sheet close.

Early-stage teams optimize for product, hiring, and runway; insurance feels like paperwork until it becomes a blocker. The issue is timing: insurance is hardest to buy when you are under deadline pressure from a customer contract, a lease, or an investor checklist.

If you are planning any of these in the next 30 to 90 days, start now:

• Signing an enterprise MSA or SOW.

• Moving into an office or signing a lease.

• Closing a priced round or adding board members.

• Hiring managers or growing headcount quickly.

Customers

Enterprise customers often require specific policies and minimum limits, certificates of insurance, and contract endorsements. The most common asks are Cyber, Tech E&O, and sometimes CGL.

Investors and board members

Fundraising triggers D&O because institutional investors and outside directors often want it to protect management and reduce governance friction.

Landlords, venues, and vendors

Office leases and event venues commonly require general liability proof, and some vendors require it before onboarding.

Directors and Officers insurance (D&O)

What it covers: Claims alleging wrongdoing in management decisions, governance, disclosures, and fundraising. Who needs it: Venture-backed startups with outside investors, a board, or a priced round coming up. When it shows up: Term sheets, board formation, director recruitment, later-stage diligence.

Technology Errors and Omissions insurance (Tech E&O)

What it covers: Claims that your software, product, or services caused a customer financial loss. Who needs it: SaaS, AI, developer tools, fintech software, marketplaces with service outcomes. When it shows up: Enterprise procurement, MSAs, SLAs, professional services work.

Cyber liability insurance

What it covers: Security incidents and privacy events, including incident response costs and third-party claims, subject to policy terms. Who needs it: Any startup handling customer data, credentials, payments, regulated data, or critical infrastructure. When it shows up: Security questionnaires, enterprise onboarding, vendor risk reviews.

Commercial General Liability insurance (CGL)

What it covers: Third-party bodily injury and property damage claims, plus certain advertising injury claims depending on wording. Who needs it: Most startups with leases, offices, events, onsite work, hardware demos, or vendor onboarding. When it shows up: Leases, COI requests, events, partner onboarding.

Employment Practices Liability insurance (EPLI)

What it covers: Employment-related claims like discrimination, harassment, retaliation, and wrongful termination, subject to policy terms. Who needs it: Any startup hiring employees, especially once managers and terminations become routine. When it shows up: Growth hiring, reorganizations, executive hiring, multi-state teams.

Hired and Non-Owned Auto (HNOA)

What it covers: Company liability when employees drive for work in personal cars or rented vehicles. Who needs it: Startups with sales teams, travel, errands, or any work-related driving. When it shows up: Enterprise contract checklists, travel-heavy teams, field work.

Fiduciary liability insurance

What it covers: Claims tied to managing employee benefit plans, often 401(k) and other benefit plan administration, subject to policy terms. Who needs it: Startups offering benefits and making vendor, fee, and plan administration decisions. When it shows up: Launching a 401(k), scaling benefits, later-stage HR maturity.

Media liability insurance

What it covers: Claims tied to content and advertising risk such as defamation and certain copyright or trademark allegations, subject to policy terms. Who needs it: Startups running paid marketing at scale, publishing content frequently, or operating platforms with content exposure. When it shows up: Brand growth, PR, creator programs, user-generated content, competitive markets.

Pre-seed and seed

• Cyber: If you handle customer data or ship software.

• Tech E&O: If you sell B2B, sign MSAs, or do implementation work.

• CGL: If you have a lease, office, events, or vendor onboarding.

• HNOA: If anyone drives for work or rents cars for business travel.

• Add D&O: If you have institutional investors, a formal board, or a priced round soon.

Series A

• D&O becomes hard to avoid once governance formalizes.

• EPLI becomes important as headcount and terminations increase.

• Higher Cyber and Tech E&O limits become common due to procurement requirements.

Growth

• Fiduciary liability as benefits mature and 401(k) participation grows.

• Media liability as marketing footprint and content risk increase.

• Ongoing limit increases driven by larger customers, larger contracts, and higher scrutiny.

1. Know the common contract asks

Have a process for Certificates of Insurance (COI), Additional Insured status (commonly on CGL), Primary and Non-contributory wording, and Waivers of Subrogation.

2. Align insurance with your contract templates

Insurance cannot fix an MSA that promises unlimited liability or unrealistic indemnities; align your default contract terms with the coverages you buy.

3. Build a simple internal checklist

Before signing, confirm which policies are required, limits by line, additional insured needs, and COI turnaround time.

Pricing depends on risk profile. Common drivers include:

• Stage, revenue, cash position, and growth rate.

• Customer profile and contract terms (SLAs, indemnities).

• Data sensitivity and security controls (especially for Cyber).

• Claims history and continuity on claims-made policies.

• Headcount and HR practices (especially for EPLI).

• Board structure, fundraising history, and cap table complexity (for D&O).

• Industry and use case (especially fintech, healthcare, and platforms).

• Waiting until a term sheet close to start D&O.

• Buying CGL and assuming it covers product performance claims that are really Tech E&O.

• Treating Cyber as a checkbox and missing key coverage components.

• Forgetting HNOA because you do not own vehicles.

• Letting claims-made coverage lapse.

• Underestimating employment risk once you start managing performance and terminations.

Corgi is built for technology companies and venture-backed startups to get the right stack without slowing down sales or fundraising.

Founders choose Corgi for:

• A startup-focused coverage stack matching procurement/investor requirements.

• Clear packaging across D&O, Tech E&O, Cyber, CGL, EPLI, HNOA, Fiduciary, and Media.

• Faster paths to proof of insurance.

• A program that scales from seed to Series A to growth.

What insurance do startups need first?

Many start with Cyber, Tech E&O, and CGL based on requirements, then add D&O as governance matures. EPLI becomes important once you hire.

When do startups need D&O insurance?

Commonly when you raise institutional capital, add a board, or close a priced round where D&O is a diligence requirement.

What is the difference between Tech E&O and CGL?

Tech E&O addresses customer claims that your product or services caused financial loss. CGL addresses third-party bodily injury and property damage claims.

Do software startups need general liability?

Often yes, because leases, vendors, and events commonly require CGL even if you do not have a physical product.

*Important notice: Coverage is subject to underwriting approval and availability varies by jurisdiction. Nothing here constitutes a binder of insurance or a guarantee of coverage. Coverage is provided only under the terms, conditions, exclusions, and limits of an issued policy. Insurance services are provided by Corgi Insurance Services, Inc. Insurance products are underwritten and issued by Technology RRG, Inc., where permitted by law.*