Errors & Omissions insurance is designed for startups that sell tech-related services or products.
Specifically, startups in the following industries may benefit:
Marketing / Advertising
You’ll also benefit from our speedy application process: 10 minutes to apply, no back-and-forth with brokers, no printing and scanning docs, coverage within 24 hours.
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As soon as you’ve launched your products or services to the public, you’re exposed to the kinds of lawsuits that E&O can help cover.
If you’re pursuing funding, having an Errors & Omissions policy in place helps show potential investors that you understand the risks you face and you’ve taken steps to mitigate them. It also means that if your startup is sued over its professional work, your investors’ money won’t go to covering legal costs. A win-win!
When you get your E&O through Vouch, you’ll be able to apply in just 10 minutes and be covered within 24 hours.
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Tech startups tend to have higher E&O exposure than those in other industries. Why? Because technology innovation moves much faster than the laws that regulate it – especially when it comes to startups. As a result, it’s not always clear who’s liable when things go wrong.
Another consideration: while nearly everybody today uses advanced technology in their daily lives, most people outside the tech industry don’t understand it. This can lead to miscommunication about what your services are, what you’re responsible for, and what customers can expect to get.
The combination of limited laws and less-than-perfect communication can lead to lawsuits. If you’re sued over your professional work, your E&O policy can help cover your legal costs.
What might those costs look like? Here are a few data points to give you an idea.
The average penalty in an E&O lawsuit is more than $140,000 – not counting your legal costs (and, again, time away from the office).
E&O insurance is designed to cover costs associated with legal claims that your professional work caused a financial loss for a customer or client. Coverage typically includes payment of legal fees and payment of any settlement or judgment against your startup, should it be found liable.
Breach of warranty
When you get your policy through Vouch, you can choose coverage limits that make sense for your exposures. This ensures you don’t pay for more coverage than you need – or get stuck in the lurch with an insufficient policy.
E&O is important, but its protection is limited to claims relating to the delivery of your professional services or product.
It’s important to note that E&O does NOT cover…
Data breach claims: In most cases, claims alleging your startup enabled or failed to prevent a cyber event like hacking are covered by a separate policy: Cyber insurance.
Employee injury costs: These are typically covered by Workers’ Comp.
Property damage: Damage to your laptops and other property that belongs to your startup (aka first-person property damage) is covered by a Business Property policy, usually included with a BOP.
Third-party injury claims: If a visitor gets hurt while visiting your workplace, damages may be covered by General Liability, also usually included in a BOP.
D&O claims: Claims against your directors and officers are excluded from the E&O policy. For these, you’ll need a Directors and Officers (“D&O”) policy.
If you’re looking for E&O, you’ve got choices.
But if you’re a tech startup interested in paying for only the coverage you need – nothing more, nothing less – you’ll have a hard time finding policies better than what we’re offering.
That’s because Vouch’s founders, Sam and Travis, started the company specifically to improve the insurance landscape for startup founders.
They’re both founders themselves (obviously), and they both have experience in the fintech world. They’re familiar with the headache that comes from trying to understand which policies to stitch together to cover a startup’s risks – and the frustration that comes from knowing you’re being forced to pay for coverage you don’t need.
Instead of a few weeks swapping PDFs with a broker, you can…
Apply in just 10 minutes.
Get covered within 24 hours.
Handle everything online.