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Insurance for Startups and Technology Companies

Cover your risks. Empower your innovation.

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Spotlight on: Insurance for Startups and Tech Companies

Innovation is the lifeblood of technology companies, but it’s also a threat.

New advances in technology mean new business risks that are difficult to predict.

Cyber liability. Errors and omissions. Intellectual property issues. These are just a few of the countless risks faced by a modern startup or technology company.

With unique risks comes a unique need for custom insurance built for your exposures.

Higginbotham serves a broad spectrum of tech companies, helping control their cost of coverage with tailored risk management programs and insurance solutions.

Why Higginbotham? Complex risks deserve custom solutions.

We do more than insure your business–we cultivate peace of mind to help you take innovation from concept to commercialization.

Our know-how knows. It knows your industry’s distinctive exposures. It knows the current technology insurance market. And it knows the latest insurance products developed to protect against your emerging risks.

To learn more about how our values-based approach creates value for you and your business, click here.

Or visit our Insights page to learn more about essential startup insurance coverages.


You deserve an innovative insurance partner.

Our seasoned technology insurance professionals start with listening and end with customized solutions. We put our creativity to work for you to deliver a holistic risk management plan built for you.

That means our work doesn’t stop after we secure your coverage.

We deliver year-round value with our Day Two Services® that support your risk management efforts throughout the term of your insurance policy. We help you prevent and minimize loss—not just cover it.

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Technology Companies and Startups We Serve

Information Technology Companies

Software Developers

Hardware Manufacturers and Assemblers

Value-Added Resellers

Data Processing Operators

Peripherals and Semiconductor Equipment Manufacturers

Electronics Manufacturers

Networking Components and Equipment Manufacturers

Local and Long-Distance Wireless Service Providers

Internet Service Providers

Data and Call Centers

Video/Teleconference Companies

Application Service Providers

Software Developers

Electronic Health Records

Payor Systems Support

Health Information Exchanges

Clinical Decision Support Companies

Telehealth Organizations

Drug Discovery Innovators

Higginbotham uses a team approach to everything they do, and we have found that approach services us (and our clients) well. TJ Hutchings is always there to serve as the direct line to a broad array of services that Higginbotham provides for us. From details as complex as governmental reporting, to a caring approach to assisting employees with coverage issues, he is available and has the entire Higginbotham team at his disposal.

Ron S.
CPA, Production Support Industry

Our Technology Insurance Carrier Partners

Higginbotham’s specialty technology industry expertise is recognized by the major technology insurance carriers.











Technology Insurance Insights

At Higginbotham, we understand that no two startups or tech companies are alike. That’s why we take the time to get to know you by name and nuance to help ensure we secure the right coverage for your needs.

While the coverages that make sense for your business will vary based on your location, operation and risk exposure, here’s some of the most popular technology insurance coverages we place.


General Liability (GL) for Tech Companies

While the average startup lacks the material assets to justify carrying considerable commercial property coverage, the importance of general liability coverage is paramount. Regardless of your tech company’s age, the financial risk of a lawsuit can be crippling. This is especially true for new startups, as a lack of liquidity makes them less likely to be able to weather the storm of a lawsuit.

New tech companies in leased space should carry general liability at a minimum. Even if your landlord already has a policy in place, the possibility of being held liable for property damage or an injury sustained by a third party is too large to ignore. General liability can help your startup with medical payments, legal fees, repair costs and more.

Directors and Officers (D&O) Liability

Serving as a director or officer at a tech company is no easy job. With each day bringing new challenges and critical decisions, mistakes are inevitable. If you or another executive at your startup makes an error in judgment, directors and officers coverage can assist with the costs of defending a lawsuit.

Designed to limit a director’s or officer’s financial risk in the aftermath of negligence, misrepresentation, breach of contract or another error in judgment, D&O can help pay legal fees, court costs, settlements, compensatory damages and more. In most cases, this coverage can also help with legal expenses incurred by your company.


Pre-Revenue Insurance

Even startups in the pre-revenue stage need insurance. Considering most are built on the viability of a new idea or intellectual property, you have a considerable amount to lose before you start making money.

Even a startup with a rented office and few tangible assets should carry general liability insurance to help control your risk. Depending on the specifics of your tech operation, you may also want to consider other key coverages.

Errors and Omissions

If your startup consults, offers professional services or renders advice in any capacity, you should think about carrying errors and omissions (E&O) insurance.

Considering the high probability of making a mistake, technology companies need protection tailored to the financial risks that likelihood creates.

Even if you don’t engage in consulting activities, you can still be sued for a misrepresentation made by your sales staff, subcontractors or another agent of your business. If you end up facing a lawsuit for negligence, misrepresentation or another error in judgment, errors and omissions coverage can help with the costs of your legal defense.

Cyber Liability Insurance

Cyber liability insurance is crucial for tech companies to consider, especially if you collect or store sensitive client data.

Designed to protect companies that work with personal or financial information, cyber liability coverage is also crucial for SaaS businesses, blog owners and any other business that uses electronic communication as part of its operation.

Capable of protecting your business against financial devastation from lawsuits, fines and penalties in the aftermath of a cyberattack, cyber liability can also help pay for forensic investigations, data recovery, public relations, notification and data restoration.


Electronic Data and Network Security

Electronic data processing (EDP) insurance is a specialized coverage that can help with the cost of remedying damage to hardware, media and data caused by mechanical breakdown, power surges, temperature issues and more.

As most tech companies rely heavily on these assets to generate value, EDP is a critical coverage to consider. Available as either a standalone policy or as an add-on coverage for a commercial property or package policy, electronic data and network security insurance can help with the cost of repairing or replacing damaged equipment, recovering data, restoring software and replacing media.

Most EDP policies cover all risks with a few occasional exceptions for flood- or earthquake-prone areas.

Cyber Extortion

Sold as an extension to cyber liability insurance, this coverage can cover costs incurred in remedying ransomware, DDoS (denial of service) attacks and other malicious cyber activities.

If your startup experiences a cyberattack, your systems or data could be held for ransom by your attacker. Defined as “a demand for money or other property through threats of seizure, damage or release of electronic data,” cyber extortion is becoming one of the most prominent threats for tech companies.

Fortunately for at-risk organizations, cyber extortion insurance can give you peace of mind knowing you’re covered. This technology coverage can help with ransom payments, repair costs and other related expenses incurred as a result of cyber extortion.

Communications and Media

Especially important for media companies and organizations that work with video, audio and photography, communications and media insurance can help your startup limit your liability.

Designed to protect against the risks of copyright and trademark infringement, this specialized coverage can help you pay for legal defense, court costs, judgments and settlements should you face allegations of intellectual property theft.

Privacy Remediation & Crisis Management Coverage

Created to address the financial and reputational risks posed by a potential data breach, privacy notification and crisis management expense coverage can help with the costs of hiring forensic experts and public relations to help minimize damage. This coverage can also help pay for establishing a post-breach call center, notifying victims and deploying credit monitoring services.

Denial of Service (DDoS Attack) Coverage

Ranking alongside cyber ransom as another crucial coverage for startups to consider, denial of service coverage can help shield you from the risk of a distributed denial of service (DDoS) attack. Capable of helping with repair and remediation costs in the aftermath of an attack, denial of service insurance is a great investment for a tech company.

Defined as “a deliberate attempt to make it impossible for a service to be delivered,” a distributed denial of service attack begins with a hacker taking control of services, devices, networks, applications, servers or another critical part of an organization’s digital infrastructure.

After gaining access, the attacker attempts to render online resources ineffective using one of three tactics:

  1. Volume-Based Attack
    This DDoS strategy intends to overwhelm a server or website with fake traffic, rendering it inaccessible to employees and clients.
  2. Protocol or Network-Layer Attack
    This attack attempts to overwhelm network infrastructures or infrastructure management tools with a high volume of erroneous data packets in an effort to crash the network or render it ineffective.
  3. Application-Layer Attacks
    This tactic intends to overwhelm and crash a critical application by flooding it with malicious erroneous requests.

Each one of these tactics poses a severe risk to a technology company. Regardless of operational specifics, there are countless ways an organization can fall victim to a DDoS attack.

Unauthorized Access

Over the past decade, sophisticated organized crime rings have developed technologies capable of defrauding members of an organization with alarming efficiency. From voice spoofing to email scams and other phishing tactics, social engineering attacks occur daily.

After gaining access to critical systems and technological infrastructure, these criminals siphon as much money as possible, often leaving organizations to foot the bill.

Rather than risk financial ruin from one of these attacks, consider adding unauthorized access coverage to your technology insurance policy. This coverage can help you recover financially from a social engineering attack by reimbursing stolen money and assisting with other related costs.

Intellectual Property (IP)

Intellectual property (IP) coverage is designed to protect your organization from the financial risks created by working with proprietary knowledge.

Typically divided into two subcategories, this coverage can help with infringement defense, abatement enforcement, or both.

Whether you need to file a lawsuit or defend one, IP coverage can help with legal fees, court costs, settlements, judgments and other expenses you may incur.

International Coverage

If your technology business conducts business abroad, you may need international coverage.

Designed for multinational firms and businesses operating overseas, this coverage picks up where a standard general liability policy ends, helping with the costs of litigation, property damage, injuries, fatalities and other damages sustained as a result of international operations.

Internet/Media Liability

In today’s litigious society, the likelihood of facing a lawsuit for libel, plagiarism, invasion of privacy, slander, defamation and a slew of other accusations has never been higher. If your tech company creates, produces or markets any form of content, you may need media liability insurance.

Whether you write blog articles, produce videos, take photographs, write books or develop television programs, the possibility of getting sued is a threat. Essentially a specialized type of errors and omissions coverage designed for publishers, ad agencies, media companies, authors, broadcasters and other content producers, media liability insurance is a crucial add-on protection for most technology businesses to consider. Capable of assisting with the costs of defending or settling a lawsuit, media liability can pay court costs, legal fees, settlements, judgments and more.

Technology Business Risk Management

A study by the Ponemon Institute sponsored by Symantec revealed that the average cost of a data breach in 2010 was $7.2 million, with the most expensive claim reaching $35.3 million. Losing sensitive data is a costly threat, but so are libel, slander, virus transmission and software code, patent, copyright and trademark infringement. Because technology companies often work globally, these risks have international regulatory considerations.

Our technology advisors help ensure your insurance coverage and loss prevention strategies evolve as your technology progresses, your company grows and regulations change. We have insurance carrier relationships in the domestic and international technology sector and niche risk management services that reinforce the insurance protections that safeguard your product development, financing and profitability.

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Work with a trusted startup and tech insurance specialist who knows your industry.

A great plan starts with a conversation. Let’s talk about what you need.

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