The baseline policies recommended for startups are cyber liability insurance, commercial general liability insurance, and professional liability insurance.
- Cyber liability insurance policies protect against claims made as the result of a data breach or software attack.
- General liability insurance policies protect against claims made relating to general liabilities associated with operating a business which result in damage to people or property.
- Professional liability insurance policies protect against claims made relating to unsatisfactory work performed by a business.
A combination of the above policies is generally offered together with certain cyber insurance policies with a limited cap for small businesses. We recommend our companies use https://www.embroker.com/startup/ with such offerings prior to taking on their first customers.
After raising an external round of financing and a business has a significant amount of customer traction, it will be more appropriate to tailor risk management policies to specific business needs. Open Core Ventures will make an introduction to a professional insurance broker who can help find a more tailored solution.