What Insurance a B2B SaaS Company Actually Needs

There are two types of insurance products that Golden Section, in particular, recommends purchasing in order to protect your investment and company. The first is Errors and Omissions (E&O) Insurance. An E&O policy protects your company, employees and other professionals against claims of inadequate work or negligent actions. E&O Insurance is professional liability insurance for tech companies. There are many types of professional mistakes that could potentially cost your customers time and money; you want to protect yourself from such claims.

Your company should also have Directors & Officers (D&O) Insurance. A D&O policy protects the personal assets of your directors and officers, and their spouses, if they are personally sued by employees, vendors, competitors, customers, investors, etc for wrongful acts in managing the company. Most directors won't agree to join your Board of

Having such insurance policies in place to protect your company and personal assets is wise. Additionally, when you look to raise your first round of funding, any potential investor will want to see these policies in place to protect their investments as well.

The goal: Purchase the right kind of insurance products to protect the investment.

How can Golden Section Assist? Golden Section's venture partner can assist here.

Steps

1. Consult an insurance agency to receive coverage options and quotes on E&O and D&O policies.
2. Sign up for coverage.
3. Know what you are buying -- insurance is opaque and the process is intentionally expedited to skip important questions from the buyer. Don't let that happen. Know what you are buying and keep good notes so that you know when it becomes relevant and where you are exposed.
4. Codification. Store policy and coverage information in a central location for easy reference.