Foundational Explainer · 9 min read

Startup Insurance: A Founder's Guide to Coverage by Stage

Startup insurance is rarely bought because a founder wants insurance — it's bought because a customer contract requires it, an investor asks about it during diligence, or a hire surfaces an exposure that nobody had thought through. This guide explains the policies that matter for startups and when to add each one.

The four core policies

Almost every startup ends up with the same four policies: General Liability, Cyber Liability, Directors & Officers (D&O), and Employment Practices Liability (EPLI). Tech E&O joins the stack the moment you have a product customers depend on. Workers' Compensation is required statutorily wherever you have employees.

When each policy comes online

Pre-seed: General Liability + Cyber as a baseline; confirm IP assignment in every employment agreement. Seed: Add D&O if you have outside investors or a formal board. Series A: Right-size D&O limits, add EPLI as headcount grows, add Tech E&O if customers rely on your product. Series B+: Layer Crime / Employee Dishonesty, increase cyber limits, coordinate executive Private Client coverage.