De-Risking for Companies
Insurance is an essential means to protect oneself from uncertainties and eliminate risks.
Read more about how the right insurance can help reduce business risks.
2,000+ companies trust us
2,000+ companies trust us
2,000+ companies trust us
The ultimate insurance guide (by founders) for founders
Starting a business is exciting and thrilling, but also incredibly stressful and brings with it an immense amount of challenges, uncertainties and risks. Insurance is an essential way to protect yourself from uncertainties and eliminate risk, because every startup and every business is unique and carries its own unique risks. This means that insurance needs vary from startup to startup. It is therefore important that you choose the right insurance for your start-up carefully.
The ultimate insurance guide (by founders) for founders
Starting a business is exciting and thrilling, but also incredibly stressful and brings with it an immense amount of challenges, uncertainties and risks. Insurance is an essential way to protect yourself from uncertainties and eliminate risk, because every startup and every business is unique and carries its own unique risks. This means that insurance needs vary from startup to startup. It is therefore important that you choose the right insurance for your start-up carefully.
Table of Contents:
However, dealing with insurance is a real challenge.
That's why we've created this ultimate guide that explains everything you need to know:
What insurance does my startup need?
Which insurance products should I start with?
Which products are more important as my startup grows?
What steps do I need to take when purchasing insurance products?
How can I reduce the costs associated with the policies?
What should I do if I have a claim?
Table of Contents:
However, dealing with insurance is a real challenge.
That's why we've created this ultimate guide that explains everything you need to know:
What insurance does my startup need?
Which insurance products should I start with?
Which products are more important as my startup grows?
What steps do I need to take when purchasing insurance products?
How can I reduce the costs associated with the policies?
What should I do if I have a claim?
1. What insurances does my startup need?
You probably don't need insurance every day. However, it's important to protect the individual risks of your business. This way, you have access to policies that cover your costs and reduce financial risks in the event of damage.
Professional liability insurance
The difference between professional indemnity insurance, public liability insurance, and financial loss liability insurance is somewhat confusing. It is important to know that professional indemnity is a generic term. The other two are different products, which will be explained below. Here you can find more information about the professional indemnity insurance.
Public liability insurance
The public liability insurance protects you from third party claims for damages, e.g. from employees, customers or suppliers. The insurance comes into effect when property or personal injury occurs during business activities. It does not matter whether the damage was caused by the policyholder or their employees.
An example of a claim: The stairs in your office are broken and a customer is seriously injured. The insurance covers the costs resulting from property and personal injury.
Once significant property and personal injuries can occur, it is worth taking out public liability insurance.
Financial loss liability insurance
The liability insurance for financial losses - also known as E&O insurance - protects you if someone suffers a financial loss due to your fault. This means that you are held responsible for the financial losses of a customer or partner due to your professional services. Typically, business owners are fully liable for such damages. Even small mistakes can lead to significant financial losses.
Example of a loss: Your customer incurs a financial loss because your product has a programming error or confidential data has been disclosed.
As soon as you represent the financial interests of third parties in any way or manage personal data, it is crucial to take out liability insurance for financial losses.
Directors and Officers insurance
The Directors and Officers (D&O) insurance is the legal bodyguard of your shareholders and protects them from personal financial liability, especially when they make critical decisions that impact the company. For example, if your startup is sued for mismanagement, fraud, or regulatory violations, without D&O insurance, the shareholders of your startup would have to pay for the damage out of their own pockets - even leading to personal bankruptcy. This policy ensures that your shareholders are protected. Many investors and VC funds require this insurance.
Once you have many - especially external - shareholders, you should take out a D&O insurance.
Legal insurance
Legal expenses insurance is like having legal assistance on call. It is a policy that covers your legal costs if your startup is faced with a legal dispute. From contract disputes to employment law issues, legal problems can arise unexpectedly. Legal expenses insurance provides the financial support you need to navigate the complex world of legal disputes.
Example of a claim: You terminate an employee who then sues you, leading to a case before the labor court. Legal expenses insurance covers the lawyer and court costs.
If your company is exposed to legal risks, such as in the area of competition or labor law, you should take out legal expenses insurance.
Cyber insurance
In our digital age, cyber insurance is essential to protect your business from cyber attacks and data breaches. It is crucial because all companies can fall victim to threats. Imagine the nightmare scenario of a data breach where sensitive information of your customers is exposed. Cyber insurance helps cover the costs of notifying those affected, dealing with the aftermath, and potential legal action.
Once your company deals with personal or sensitive data, we recommend cyber insurance.
Start-ups are young companies building everything from the ground up, developing products, and making mistakes. It's important to secure the right insurance to protect against uncertainties, mistakes, and risks. From the beginning, get the essential products and expand your insurance portfolio as your company grows.
1. What insurances does my startup need?
You probably don't need insurance every day. However, it's important to protect the individual risks of your business. This way, you have access to policies that cover your costs and reduce financial risks in the event of damage.
Professional liability insurance
The difference between professional indemnity insurance, public liability insurance, and financial loss liability insurance is somewhat confusing. It is important to know that professional indemnity is a generic term. The other two are different products, which will be explained below. Here you can find more information about the professional indemnity insurance.
Public liability insurance
The public liability insurance protects you from third party claims for damages, e.g. from employees, customers or suppliers. The insurance comes into effect when property or personal injury occurs during business activities. It does not matter whether the damage was caused by the policyholder or their employees.
An example of a claim: The stairs in your office are broken and a customer is seriously injured. The insurance covers the costs resulting from property and personal injury.
Once significant property and personal injuries can occur, it is worth taking out public liability insurance.
Financial loss liability insurance
The liability insurance for financial losses - also known as E&O insurance - protects you if someone suffers a financial loss due to your fault. This means that you are held responsible for the financial losses of a customer or partner due to your professional services. Typically, business owners are fully liable for such damages. Even small mistakes can lead to significant financial losses.
Example of a loss: Your customer incurs a financial loss because your product has a programming error or confidential data has been disclosed.
As soon as you represent the financial interests of third parties in any way or manage personal data, it is crucial to take out liability insurance for financial losses.
Directors and Officers insurance
The Directors and Officers (D&O) insurance is the legal bodyguard of your shareholders and protects them from personal financial liability, especially when they make critical decisions that impact the company. For example, if your startup is sued for mismanagement, fraud, or regulatory violations, without D&O insurance, the shareholders of your startup would have to pay for the damage out of their own pockets - even leading to personal bankruptcy. This policy ensures that your shareholders are protected. Many investors and VC funds require this insurance.
Once you have many - especially external - shareholders, you should take out a D&O insurance.
Legal insurance
Legal expenses insurance is like having legal assistance on call. It is a policy that covers your legal costs if your startup is faced with a legal dispute. From contract disputes to employment law issues, legal problems can arise unexpectedly. Legal expenses insurance provides the financial support you need to navigate the complex world of legal disputes.
Example of a claim: You terminate an employee who then sues you, leading to a case before the labor court. Legal expenses insurance covers the lawyer and court costs.
If your company is exposed to legal risks, such as in the area of competition or labor law, you should take out legal expenses insurance.
Cyber insurance
In our digital age, cyber insurance is essential to protect your business from cyber attacks and data breaches. It is crucial because all companies can fall victim to threats. Imagine the nightmare scenario of a data breach where sensitive information of your customers is exposed. Cyber insurance helps cover the costs of notifying those affected, dealing with the aftermath, and potential legal action.
Once your company deals with personal or sensitive data, we recommend cyber insurance.
Start-ups are young companies building everything from the ground up, developing products, and making mistakes. It's important to secure the right insurance to protect against uncertainties, mistakes, and risks. From the beginning, get the essential products and expand your insurance portfolio as your company grows.
2. With which insurance products should I start?
The big question is where to start with your startup's insurance. Unfortunately, the optimal insurance coverage varies from startup to startup, as each company is unique.
Our general recommendation for pre-seed and seed startups are the following 'must-have' products:
Professional liability insurance
Cyber insurance
D&O insurance.
Once your startup deals with personal and sensitive data, we recommend startups to take out professional liability and cyber insurance. PLI protects your startup from claims of financial losses from customers and partners, while cyber insurance protects your startup from damages caused by cyber attacks and data breaches.
Most startups receive equity participation in an early stage. This means new shareholders enter the capital market. They can sue if they believe that the management has made wrong decisions. D&O insurance protects shareholders, employed managing directors, and senior employees from slight negligence.
Clarify whether taking out a household, public liability, or legal expenses insurance is also advisable.
2. With which insurance products should I start?
The big question is where to start with your startup's insurance. Unfortunately, the optimal insurance coverage varies from startup to startup, as each company is unique.
Our general recommendation for pre-seed and seed startups are the following 'must-have' products:
Professional liability insurance
Cyber insurance
D&O insurance.
Once your startup deals with personal and sensitive data, we recommend startups to take out professional liability and cyber insurance. PLI protects your startup from claims of financial losses from customers and partners, while cyber insurance protects your startup from damages caused by cyber attacks and data breaches.
Most startups receive equity participation in an early stage. This means new shareholders enter the capital market. They can sue if they believe that the management has made wrong decisions. D&O insurance protects shareholders, employed managing directors, and senior employees from slight negligence.
Clarify whether taking out a household, public liability, or legal expenses insurance is also advisable.
3. Which products are more important as my startup grows?
Congratulations, your startup is growing! The larger the company, the more customers, the more internal processes, the more mistakes can happen, the more risks there are! That's why it's important for your company and your growth to secure additional risks now.
As your company grows, we recommend that you take out legal expenses and household contents insurance.
Legal insurance
When your company expands, so does your legal risk. Legal disputes can be costly and disruptive. Legal expenses insurance can become more important as your business grows, as it covers legal costs associated with legal disputes, employment issues, and other legal challenges. It is your legal safety net, ensuring that you have the means to protect your interests and navigate the complex world of commercial law.
Content insurance
With the growth of your business, the number of assets also increases. You move to a larger office, purchase more equipment for your employees, have a larger warehouse, ... The need for comprehensive contents insurance therefore increases with the assets. For example, in the event of water damage, the insurance not only provides financial security, but also ensures the continuity of your business.
3. Which products are more important as my startup grows?
Congratulations, your startup is growing! The larger the company, the more customers, the more internal processes, the more mistakes can happen, the more risks there are! That's why it's important for your company and your growth to secure additional risks now.
As your company grows, we recommend that you take out legal expenses and household contents insurance.
Legal insurance
When your company expands, so does your legal risk. Legal disputes can be costly and disruptive. Legal expenses insurance can become more important as your business grows, as it covers legal costs associated with legal disputes, employment issues, and other legal challenges. It is your legal safety net, ensuring that you have the means to protect your interests and navigate the complex world of commercial law.
Content insurance
With the growth of your business, the number of assets also increases. You move to a larger office, purchase more equipment for your employees, have a larger warehouse, ... The need for comprehensive contents insurance therefore increases with the assets. For example, in the event of water damage, the insurance not only provides financial security, but also ensures the continuity of your business.
4. What steps do I need to take when purchasing insurance products?
The search for the right insurance for your start-up is a complex and time-consuming process. With a methodical approach and the right guidance, you can make this process more efficient. Here are the key steps to consider:
Identify unique risks
Mapping risks to insurance products
Definition of risk parameters
Collecting information for quotes
Researching insurers
Obtaining multiple cost estimates
Centralizing information
Continuous monitoring and adjustment
Keep in mind that risks are dynamic and grow with your business. Do not consider it a one-time task, but rather an ongoing process to effectively protect your business.
4. What steps do I need to take when purchasing insurance products?
The search for the right insurance for your start-up is a complex and time-consuming process. With a methodical approach and the right guidance, you can make this process more efficient. Here are the key steps to consider:
Identify unique risks
Mapping risks to insurance products
Definition of risk parameters
Collecting information for quotes
Researching insurers
Obtaining multiple cost estimates
Centralizing information
Continuous monitoring and adjustment
Keep in mind that risks are dynamic and grow with your business. Do not consider it a one-time task, but rather an ongoing process to effectively protect your business.
5. How you can reduce insurance costs
As the founder of a start-up, you know how important it is to keep your company financially lean and efficient. This mindset should also extend to your approach to insurance. While insurance is important to protect your start-up, it doesn't mean you have to spend a fortune on it. Below, you will learn how to effectively reduce the costs associated with insurance:
Find experienced insurers
Research benchmark data
Compare quotes
Consider product bundling
Continuous contract optimization
Efficient insurance management
5. How you can reduce insurance costs
As the founder of a start-up, you know how important it is to keep your company financially lean and efficient. This mindset should also extend to your approach to insurance. While insurance is important to protect your start-up, it doesn't mean you have to spend a fortune on it. Below, you will learn how to effectively reduce the costs associated with insurance:
Find experienced insurers
Research benchmark data
Compare quotes
Consider product bundling
Continuous contract optimization
Efficient insurance management
6. What to do if you have a damage?
An insurance claim can be an intimidating experience! In this unforeseen circumstance, it is important to know what steps to take.
1. Report the damage immediately
As soon as you become aware of a potential claim, you must report it to your insurer or broker immediately. Insurance policies often require prompt notification, and delayed notification could jeopardize your insurance coverage. Provide all relevant details, including the date, time, location, and nature of the incident.
2. Understand the deadlines and requirements of the policy
Different insurance policies may contain specific deadlines and requirements for filing claims. Read and understand your policy to ensure you meet these requirements. Compliance with these regulations is crucial for successful regulation. If you are unclear about specific regulations, ask your insurer or broker for clarification.
3. Collect comprehensive evidence
Collecting evidence is a crucial step in the regulatory process. The specific requirements may vary depending on the type of claim. For example:
For property damage, document the extent of the damage with photos.
For liability claims, gather information such as the names of the involved parties, insurance policy numbers, and any witness statements.
For cyber-attacks or data loss, provide detailed information about the nature and scope of the attack.
4. Monitor the process
Stay active in the processing. Regularly check the status and deadlines for handling with your insurer.
5. Keep records and documents
Keep careful records of all communications, documents, and processes related to the claim. These records can serve as important evidence in the event of disputes and ensure transparency of the process.
6. What to do if you have a damage?
An insurance claim can be an intimidating experience! In this unforeseen circumstance, it is important to know what steps to take.
1. Report the damage immediately
As soon as you become aware of a potential claim, you must report it to your insurer or broker immediately. Insurance policies often require prompt notification, and delayed notification could jeopardize your insurance coverage. Provide all relevant details, including the date, time, location, and nature of the incident.
2. Understand the deadlines and requirements of the policy
Different insurance policies may contain specific deadlines and requirements for filing claims. Read and understand your policy to ensure you meet these requirements. Compliance with these regulations is crucial for successful regulation. If you are unclear about specific regulations, ask your insurer or broker for clarification.
3. Collect comprehensive evidence
Collecting evidence is a crucial step in the regulatory process. The specific requirements may vary depending on the type of claim. For example:
For property damage, document the extent of the damage with photos.
For liability claims, gather information such as the names of the involved parties, insurance policy numbers, and any witness statements.
For cyber-attacks or data loss, provide detailed information about the nature and scope of the attack.
4. Monitor the process
Stay active in the processing. Regularly check the status and deadlines for handling with your insurer.
5. Keep records and documents
Keep careful records of all communications, documents, and processes related to the claim. These records can serve as important evidence in the event of disputes and ensure transparency of the process.
Join 2,000+ companies using SureIn
Join 2,000+ companies using SureIn
Join 2,000+ companies using SureIn
Questions?
Questions?
Questions?