Insurance for a saas / software company: what you need + typical cost.

For your business: BOP can bundle GL + Property at a discount, but cyber must be added separately — verify it's included.

What it covers in general: A Business Owners Policy bundles General Liability and Commercial Property into a single, discounted policy. Often includes business interruption insurance as well.

Typical annual cost: $750–$1,800 (median $990) · Insureon, Small Business Insurance Cost

For your business: Covers premises liability and advertising injury; often required by enterprise client contracts.

What it covers in general: Covers claims of bodily injury or property damage that your business causes to others — a customer slipping in your shop, or a contractor accidentally breaking a client's window.

Typical annual cost: $500–$1,560 (median $540) · Insureon, General Liability Cost

For your business: Technology E&O covers claims that your software failed to perform as promised or caused data loss.

What it covers in general: Covers claims that your professional advice, service, or work product caused a financial loss to a client — also called Errors & Omissions (E&O) or malpractice insurance.

Typical annual cost: $700–$1,500 (median $876) · Insureon, Professional Liability Cost

For your business: Required in most states for W-2 employees. Remote contractors (1099) are typically not covered.

What it covers in general: Pays for medical expenses and lost wages if an employee is injured or becomes ill because of their job. Also protects your business from employee lawsuits over workplace injuries.

Typical annual cost: $1,200–$8,000 (median $2,500) · Insureon, Workers Compensation Cost

For your business: If you have physical servers or a leased office with equipment; cloud-native companies need less coverage here.

What it covers in general: Covers your physical business assets — building (if you own it), equipment, inventory, and furniture — against fire, theft, vandalism, and certain weather events.

Typical annual cost: $970–$1,570 (median $1,270) · Insureon, Commercial Property Cost

For your business: A data breach involving customer records triggers mandatory notification, credit monitoring, and legal costs. Non-negotiable for SaaS.

What it covers in general: Covers losses from data breaches, ransomware attacks, and cyber fraud — including notification costs, credit monitoring for affected customers, legal fees, and regulatory fines.

Typical annual cost: $1,440–$2,160 (median $1,800) · Insureon, Cyber Liability Cost

For your business: Software businesses don't typically operate commercial vehicles.

What it covers in general: Covers vehicles used for business purposes — work trucks, vans, cars driven to client sites — against accidents, liability, and damage. Personal auto policies specifically exclude commercial use.

Typical annual cost: $1,760–$2,940 (median $2,350) · Insureon, Commercial Auto Cost

For your business: Enterprise clients often require $2M+ combined limits; an umbrella policy is the cost-effective way to reach those thresholds.

What it covers in general: Adds an extra layer of liability coverage above your GL, Professional Liability, and/or Auto limits. Pays claims that exceed your primary policy limits.

Typical annual cost: $750–$1,500 (median $1,030) · Insureon, Umbrella Liability Cost

Why do enterprise contracts always demand cyber insurance even if we don't store sensitive data?

Procurement teams use insurance as a proxy for 'this vendor is mature enough to be auditable.' Even if your data is non-PII, the carrier's underwriting questions force you to document security practices the customer can't easily verify themselves. The $2M cyber requirement isn't really about the $2M payout — it's about the underwriting process you had to pass.

Does my US cyber policy cover GDPR fines for European users?

Most do, but with sub-limits — often $250K-$500K for regulatory action specifically, even on a $2M overall policy. If you have material EU exposure, ask the carrier explicitly for a GDPR endorsement and read the regulatory-action section carefully.

Do I need workers comp if my whole team is 1099 contractors?

Generally no — workers comp covers W-2 employees. But misclassification is one of the most-audited issues in tech: if your 'contractors' work full-time, use your laptop, and follow your direction, the IRS or a state board may reclassify them. If that happens, you'll owe back-comp premiums plus penalties. Worth a 30-min call with an employment attorney before scaling 1099 headcount.