In 2025, IT Staffing & Software Development companies face a risk landscape that’s evolving faster than ever. From cloud-based startups to SaaS unicorns, ensuring you have the right business insurance for tech companies is no longer optional—it’s essential for growth, compliance, and peace of mind. Whether you’re a tech startup navigating Series A funding or a mature software company scaling globally, this guide breaks down the critical types of insurance for tech companies, what they cover, how much they cost, and what you actually need.
The risk profile of a technology business is radically different from that of a construction firm or retail operation. A simple bug in code, a missed SLA, or a data breach can cost millions—and lead to lawsuits, lost clients, or regulatory fines.
If you’re running a SaaS, AI, cloud services, or development firm, business insurance for tech startups and enterprise software firms is not just a backstop—it’s a strategic investment in operational resilience and stakeholder trust.
We’ll benchmark your current policies against similar-sized tech firms in our portfolio and expose where you’re underinsured, overpaying, or out of compliance.
Get StartedCyber Liability Insurance
Cyber liability is arguably the most important insurance for modern tech firms. It covers the costs of data breaches, ransomware attacks, and regulatory fines.
Common aread of coverage:
2025 Cost Range for first party sublimits at $1M:
Pro Tip: If you handle PII, host data, or have a login portal, you need cyber—even if you outsource IT.
Technology Errors & Omissions (Tech E&O)
E&O for tech companies protects against claims of failure in your services, products, or technology. If your software crashes a client’s system or you miss a critical deadline, E&O is what saves you.
Covers:
2025 Cost Range:
Insured’s Annual Revenue $1M Limit $3M Limit $5M Limit $10M Limit $0 – $5M $1,000 – $4,200 $2,500 – $10,000 $4,500 – $17,500 Not typically offered $10 – $20M Not typical $17,000 – $20,000 $23,000 – $27,500 $45,000 – $60,000 $50M+ N/A N/A $50,000+ $75,000+
Founder Insight: Most enterprise clients and government contracts will require Tech E&O before signing, but not all Tech E&O is created equally. Check out The Hartfords comparison here.
D&O protects your leadership team from lawsuits related to decisions they make on behalf of the company. This is critical for startups with investors, advisors, or a board.
Covers:
2025 Cost Range:
Investor Tip: Most VCs mandate D&O coverage before closing a round.
GL is foundational—it covers bodily injury or property damage claims related to your physical premises or day-to-day operations.
Covers:
2025 Cost Range:
Note: This is usually required to sign a lease or work out of co-working spaces.
If you have employees, even remote ones, you’re likely required by law to carry workers’ comp.
Covers:
2025 Cost Range:
Remote Rule: Some states require you to have a local policy if your employee lives there—even if HQ is elsewhere.
| Business Type | Must-Have Coverage | Contextual |
|---|---|---|
| SaaS Startup | Cyber, E&O, GL | D&O, Workers’ Comp |
| AI/ML Startup | Cyber, E&O, D&O | IP Insurance |
| Fintech | Cyber, E&O, D&O, GL | Crime, EPLI |
| Dev Shop | GL, E&O | Workers’ Comp |
| Marketplace Platform | Cyber, E&O | D&O, Media Liability |
Do you store, transmit, or manage client data? → You need Cyber
Do clients rely on your code or service? → You need Tech E&O
Do you have a board, raise capital, or make big decisions? → You need D&O
Do you lease office space or host events? → You need GL
Do you pay employees (even one)? → You need Workers’ Comp
The right tech company insurance isn’t just about avoiding catastrophe—it’s about enabling growth, closing deals faster, and protecting what you’re building. If you’re unsure where to start, work with a broker who specializes in business insurance for software companies and understands the unique risks of scaling a tech business in 2025.
Need help reviewing your current policy or building one from scratch?
→ Get a no-cost coverage audit with same-day turnaround—especially for tech.
Discover essential venture capital insurance solutions designed to protect VC firms and tech startups from…
You may have home insurance, and auto insurance, but is your motorhome properly covered? Let's…
For many families with young children, COVID-19 has made the idea of in-home child care…
First things first — make sure you're safe. Here are a few things to do…
Vacant land has become an increasingly appealing investment, particularly in the age of social distancing…
Home and auto policies go together like a great team – cookies and milk or…