National · 5 min read
Business insurance for startups doesn't have to be a research project. If you're a founder or COO at a venture-backed company, you really only need to answer two questions: which policies does a company like mine need, and when does each one become necessary? This checklist answers both, stage by stage, so you can buy exactly what your contracts, investors, and state laws require — no more, no less. We've organized it the way startup business insurance actually gets bought: triggered by milestones (a lease, a hire, a funding round, an enterprise deal) rather than all at once. For the deeper strategy behind the three core specialty lines, see our full startup insurance guide.
General liability (GL) / BOP — Required by virtually every commercial lease and coworking agreement. Most startups buy it as a business owner's policy (BOP) bundled with property coverage for laptops and equipment. Typically one of the cheapest policies you'll own. Details in our guide to general liability insurance for startups. Workers' compensation — Legally required in nearly every state once you have employees (in some states, from employee one). Penalties for going without are steep; this is not optional. Cyber insurance (if you're handling data) — If your MVP already stores user data or you've connected to customer systems, don't wait. Early-stage cyber insurance for small businesses is inexpensive and covers breach response, ransomware, and notification costs that would otherwise come out of your runway.
D&O insurance — The trigger is outside capital. Most institutional term sheets require directors and officers insurance at closing, and independent board members will ask about it before they join. It protects founders' and directors' personal assets from suits by investors, regulators, and others. Tech E&O (errors & omissions) — The moment you sign paying customers, you have professional liability exposure: claims that your product failed or caused financial loss. Tech E&O insurance is usually written as a combined policy with cyber — one carrier, one premium, no coverage gaps between a software failure and a security failure. EPLI (employment practices liability) — Covers wrongful termination, discrimination, and harassment claims. Often bundled with D&O in a management liability package. Worth adding as headcount passes roughly ten employees, and earlier in employee-friendly states like California and New York.