From accounting tools to collaboration platforms to enterprise resource planning, the industries you serve rely on your software and hardware solutions for their day-to-day operations. Whether you’re a freelancer running a software company or a large corporation, we’ll get you ALIGNED with customized, comprehensive SaaS Provider Insurance that delivers the risk management solutions you need.
What is SaaS insurance?
SaaS insurance protects SaaS companies against certain liability and operational risks of running a business. Some of these risks include lawsuits from unhappy customers, injuries, equipment breakdown, cyberattacks, and property damage. It helps SaaS providers mitigate the financial risks involved in a SaaS business and reduce some of the financial loss in the event of an insurance claim.
For example, you provide a piece of software to a client, and there is a data breach in the software which causes the client to lose their database. SaaS insurance can help cover some costs associated with data recovery, notification, credit monitoring, public relations, and civil damages.
What insurance do software companies use?
Many types of insurance benefit software companies. Any company should have general liability insurance and commercial property insurance. General liability insurance protects the company against third-party claims of bodily injury and property damage. Commercial property insurance protects the company’s physical assets against loss or damage from an insured peril.
Directors & officers insurance protects the company and the personal assets of the officers and directors against claims of misrepresentation, breach of fiduciary duty, and mismanagement. Some SaaS companies, especially startup companies, will be required to purchase this insurance, so investors know their assets are protected. Errors & omissions insurance protects the company against claims alleging work-related mistakes.
Lastly, cyber liability insurance is one of the most essential insurance policies to have. It protects the company against the expenses of cyberattacks and data breaches. This includes ransom, data recovery, and notification.
Do software companies need general liability insurance?
General liability insurance is beneficial to all companies. It provides coverage for most basic day-to-day operations and potential risks that could cost third-party bodily injury or property damage. For example, slip-and-fall accidents and broken computers. Insurance helps reduce your out-of-pocket expenses when these accidents arise. Otherwise, these risks could be costly without a comprehensive general liability insurance policy.
Do tech companies need insurance?
Most tech companies are fast-growing, and there are many tech startups. As a result, mistakes and other accidents could happen while these companies try to scale up. Insurance ensures these companies aren’t faced with costly financial loss should something unexpected happen. Investors usually require companies, especially tech startups that go through external funding, to purchase insurance to ensure their personal assets are protected.
How SaaS Provider Insurance Can Protect You
The following are examples of some of the risks SaaS tech companies face:
- An outage or service disruption on your end causes several clients to lose hundreds of thousands of dollars in the time it takes to get your service operational again.
- During system integration or migration, hundreds of records are lost resulting in costs to your client.
- A breach of your systems exposes protected personal information (PII) of your clients’ records.
- A competitor claims that your software contains elements identical to their own and sues for IP infringement.
Our SaaS provider business insurance packages can protect your organization by covering:
- Medical expenses, property damage costs and financial losses
- Lawyer’s fees and costs to mount a defence
- Out-of-court settlements
- Awards for damages
SaaS Provider Insurance Coverages
The following are coverages that are included in our SaaS provider insurance plans:
TechnologyErrors & Omissions (E&O) Insurance – is a basic policy for SaaS providers that can cover legal liability, losses and expenses for claims of errors, omissions, breach of contract and other forms of negligence that lead to client losses.
Commercial General Liability (CGL) Insurance – can cover your operations and products against claims of personal injury, property damage, false advertising, libel/slander and more.
Cyber Liability Insurance & Privacy Insurance – with the amount of PII stored within your systems, an uninsured cyber breach could very well mean the end of your SaaS company. Cyber insurance policies can cover the costs of a breach including losses sustained by third parties, notification and credit monitoring, costs to repair systems, brand rehabilitation expenses and more.
Other SaaS Provider Insurance Coverages You May Need
Property Insurance which can include extensions for
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