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Startup Insurance by Corgi

Written by the Corgi team

Published 8 min read

Startup insurance is a set of business insurance policies designed to protect founders, the company, and the balance sheet from common risks like lawsuits, security incidents, customer claims, and employment disputes. Most startups need a few core policies early, then add coverage as they hire, sign bigger contracts, and raise more capital.

Corgi is built for technology companies and venture-backed startups. You can get the right coverages fast, with startup-specific underwriting and proof of insurance when you need it.

Who this is for

Corgi startup insurance is for VC-backed startups (pre-seed through growth), including SaaS, AI, fintech, healthcare tech, marketplaces, and developer tools. It is for companies:

  • Signing enterprise contracts with insurance requirements.
  • Hiring employees, executives, or adding a board.
  • Handling sensitive data, payments, or regulated workflows.

When startups usually need insurance

Most startups buy insurance at one of these moments:

  • Your first enterprise customer asks for COIs (certificate of insurance).
  • A customer contract requires specific limits for cyber, E&O, or CGL.
  • You raise a priced round and investors require D&O.
  • You hire employees and want protection from employment-related claims.
  • You store customer data or handle payments and need cyber coverage.
  • You add a board member or independent director and need D&O.

What policies do startups need?

There is no single 'startup insurance policy.' Startups usually purchase a bundle of policies, each covering a specific type of risk.

Directors and Officers (D&O) Insurance

What it is: Protects founders, executives, and directors from claims tied to management decisions. Common triggers: Fundraising disputes, shareholder claims, governance issues.

Technology Errors and Omissions (Tech E&O)

What it is: Covers claims that your product or services caused a customer financial loss. Common triggers: Outages, failed implementations, performance issues.

Cyber Liability Insurance

What it is: Covers security incidents, data breaches, privacy claims, and incident response costs. Common triggers: Breaches, ransomware, vendor incidents, privacy regulatory actions.

Commercial General Liability (CGL)

What it is: Covers third-party bodily injury, property damage, and certain advertising injury claims. Common triggers: Someone gets injured at your office or event, damage to third-party property.

Employment Practices Liability (EPLI)

What it is: Covers employee claims like discrimination, harassment, retaliation, and wrongful termination. Common triggers: Employee disputes, management claims.

Hired and Non-Owned Auto (HNOA)

What it is: Covers liability when employees drive for work in personal or rented vehicles. Common triggers: Employee runs an errand or drives to a meeting and causes an accident.

Fiduciary Liability

What it is: Covers claims tied to managing employee benefit plans (ERISA-related allegations). Common triggers: 401(k) plan administration disputes, fee allegations.

A simple way to choose coverage by stage

Early stage (pre-seed, seed)

Most common starting bundle:

  • Cyber
  • Tech E&O (if you have customer contracts or services)
  • D&O (often once you have institutional investors or a board)
  • HNOA (if employees drive for work)
  • CGL (if required by lease or vendors)

Series A and beyond

Common additions:

  • EPLI (hiring risk rises quickly).
  • Higher cyber and E&O limits (enterprise requirements).
  • Fiduciary (benefits and ERISA exposure grow).
  • More robust D&O structure (board and investor scrutiny increases).

Why startups choose Corgi

Built for startup workflows

Corgi is designed around moments where coverage is needed: contracts, diligence, procurement, and COIs.

Coverage that maps to how startups operate

Packages common lines like D&O, cyber, E&O, CGL, EPLI, HNOA, and fiduciary.

Faster quoting and cleaner underwriting inputs

Focuses on signals that matter for technology risk, meaning fewer dead-end forms.

Proof of insurance when you need it

Built to make the COI process simple.

One place to manage it as you scale

Structured so you can add coverages and adjust as your product, headcount, and customer base evolve.

Common mistakes startups make

  • Buying only the cheapest policy and failing procurement later.
  • Waiting until the contract is on the table, then rushing coverage.
  • Skipping D&O until after the term sheet, then delaying the round.
  • Underinsuring cyber when data exposure is real.
  • Ignoring EPLI until there is a problem.

FAQs

What is 'startup insurance'?

It is not one policy. It is a bundle of business insurance policies that cover common startup risks, usually including cyber, E&O, D&O, CGL, and often EPLI.

Do startups need D&O insurance?

Many venture-backed startups need D&O once they raise institutional capital, add a board, or sign agreements that require it.

Do startups need cyber insurance?

If you store customer data, process payments, run a SaaS product, or integrate with third parties, cyber insurance is often a key policy.

What is the difference between CGL and E&O?

CGL generally covers bodily injury and property damage claims. E&O covers financial loss claims tied to your product or services performance.

*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., where permitted by law.*

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