Insurance for startups
Customise your policy, whether you're an early-stage business or a high growth tech startup. If you're unsure of the covers you need, or are ready to update, we're here to help.
Do startups need insurance?
As a business that's finding its feet, you might not think you need insurance. But new businesses are not immune from claims – taking risks at the early stages, making huge pivots at the drop of a hat or making efforts to secure investments are all reasons to get covered.
Powered by leading tech, our covers are designed to provide highly-tailored protection at a competitive premium.
- Pay monthly or annually, it’s your choice
- Change your cover as your business grows, without fees
- Choose from a full suite of business covers
- Work with our advisors to build a policy that suits your business
- Five-star customer service and claims support
You think up, we think through
Idea stage? Angel or seed investors? Venture-backed? Unicorn? Pre-revenue? Public? Wherever you are with your business, and wherever you’re going, we cover it all.
Our quote builder allows you to easily choose which covers you want and gives you a quote in a few minutes. If, however, you require more support for more complex or larger-scale insurance solutions, our dedicated advisors will help you understand what your business needs to stay protected.
What insurance should startups consider?
It's important to have exactly the right cover so you're always protected for the risks that are most relevant to your startup business. Every business is different, and we're here to help you get the right cover. Here are a few covers that most startups find suitable.
Professional indemnity (PI) insurance (also known as errors and omissions insurance) protects your business from a range of exposures, such as mistakes in your service provided, compensation claims, contract disputes and intellectual property disputes.
Directors' and officers' insurance
D&O covers personal liability for any mistakes or omissions allegedly made by a company’s management team. That includes any legal defence costs and awards made against them. It's likely your investors will require you to have directors' and officers' upon closing your funding rounds.
If you work with sensitive client information or store personal or financial customer or client data, including payment card details, you might want to consider cyber insurance. It offers financial and specialist support in the event of a data breach and is often paired with professional indemnity insurance if you’re an early stage startup.
Public liability insurance
An essential type of cover for anyone working with third-parties, public liability insurance covers claims of accidental injury or property damage as a result of your business from members of the public. This can include clients, customers, couriers – basically anyone that your business interacts with who isn't an employee.
Depending on the industry, some clients or customers may require you to have this type of cover in order to do business with you.
Employers' liability insurance
If you're an employer in the UK, you are legally required to have employers' liability insurance. As an employer, it's your responsibility to protect the health and safety of your employees. If one of your workers suffered an accidental injury, illness or property damage as a result of working for you, they might want to claim compensation. If this happened, employers' liability would cover the legal fees and compensation costs associated with the claim.
Patents and IP rights can be vital and valuable assets to startups. Intellectual property insurance will cover you should you need to defend an IP lawsuit, as well as if you need to pursue one.
Once you've completed a quote, you'll be able to view a summary of cover. Please always refer to your policy documents for full details around exclusions, terms and limits of your customised cover. Read our guide to understanding your policy documents.
Be quote confident
We're big on fairness. So if you find a lower price for a comparable quote, we won't just match it – we'll go one better and beat it.
So even better than apples to apples, apples to better apples. We're talking Galas to Braeburns.
As you'd expect, T&Cs apply.
Why do startups need insurance?
Potential investors will appreciate you having insurance and will consider you a safer bet. You'll always have to take risks, that's what makes you an entrepreneur and startup founder. But having an eye for the key risks of your startup is equally important for investors.
Building your dream team
As your business grows, you'll likely want to hire a dream team of people to help you build your startup even more. While this is super exciting, it also means that you're legally required to get covered. Employers' liability insurance is essential for startups looking to scale.
No room for mistakes
As a startup, every penny counts. If something went wrong and you didn't have insurance, the cost of a claim would have to come out of your own pocket, which could make a serious dent in your finances and make it very difficult for your business to recover.
Everyone has a clear picture of startup culture – no two days are the same and everyone is pretty rushed off their feet. One decision could change the entire premise or structure of your startup. Choosing an insurance company that allows for unlimited changes to your policy free of charge will mean that your business is always protected for the things it needs to be as it changes.
New business claims
The risks that could result in a claim being made are different for every business, especially if you're a startup, but here are a few examples of claims where the business could be liable.
You present misleading information to an investor who loses money as a result.
D&O cover would protect your personal assets by covering legal expenses in a lawsuit where they are named individually.
One of your employees spills hot coffee over a client's arm and their laptop.
Public liability insurance would replace the laptop and pay the legal and compensation costs associated with the claim.
An employee suffers mental health issues after being in a high pressure environment at work.
Employers' liability insurance would cover the legal fees and compensation associated with the claim.
The payment card system you use is hacked and customers’ private card details are stolen.
Cyber cover provides industry-leading breach response support as well as covering your legal costs and compensation payments due to affected customers.
How do startup claims work?
Notify us of the claim
Ideally this should be done as soon as possible and within 30 days of you becoming aware of anything which you think may be covered by your insurance.
A good indicator of whether or not to let us know is if there's an issue which may require a payment to be made on your behalf.
We'll get on the case
We'll acknowledge your claim within 24 hours, and sometimes in as little as 30 minutes! This means you'll receive email confirmation of your claims reference and contact information should you need to speak to us.
We will then reach out to you within 48 hours to request any extra information we need to progress your claim.
We'll keep you updated on the next steps as the claim progresses.
A decision is made
We'll let you know if your claim is successful or not. If your claim isn't covered, we will always try to point you in the right direction and support you as best we can in getting back to normal.
If your claim is successful, once we have all the documents we need, we will aim to settle claims such as accidental damage, theft and lost equipment within five working days.
- 7 Dec 20235 minute read
Ever wondered what intellectual property is? Want to know how intellectual property insurance can help protect your business? Then read this handy guide.
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