You, your cofounders, and your big idea.
In the early days, risk management is not top of mind. And that’s okay–Your biggest risk is whether you get into YC. We get it.
Your startup is real.
And in the moments between chasing customers and iterating on your MVP, you’re choosing the tools and partners that comprise your “startup stack”, like payroll, corporate cards, and yes, business insurance.
It’s time to build.
Time to hand-select the team that’s going to get you to your first product launch. Even with a team you trust, expanding beyond the founders means that new risks related to employment litigation are introduced.
A requirement in nearly every state, and often provided directly by your HR software platform. Learn more.
Employment Practices Liability
Recommended when you have five or more employees, or after the first hire if you operate in a highly litigious state like CA or NY.
Getting customers on board.
Things are getting real! Your product is out there, and you have paying customers relying on you. Now is the time to make sure you’re covered for situations caused by an error or vulnerability in your product.
Errors and Ommissions
Technology E&O Insurance is important for tech companies. It protects you in situations where an error in your product causes a financial loss for one of your customers.
Recommended if your product deals with PII. Cyber insurance usually includes two types of coverage, 1st party and 3rd party, which you can read more about here.
Building a collaboration space.
For many companies, in-person collaboration is irreplaceable. Whether it's a WeWork or a longer lease, this is a good time to check your lease requirements and make sure your General Liability coverage is sufficient.
HOW WE HELP
There are many reasons you may need a Certificate of Insurance. Customers, lenders, investors, and even landlords often want to see proof that you meet their insurance requirements. You can download a COI from your Vouch Account any time.
Looking ahead to next year.
If your business hasn’t changed much, renewing your insurance may be as simple as re-filling your application and clicking submit. But if you’ve grown or pivoted, you should chat with your account manager about whether to update your coverages.
HOW WE HELP
Talk to an expert
It’s helpful to check in with your Account Manager before any big milestone or major pivot. You should also touch base prior to budget planning and a month or two before your renewal date.
Getting ready to scale.
You’ve got traction, now it's time to convince additional investors that you're ready to ramp up. Series A investors will usually require D&O coverage before closing, but having policies in place proactively can make your company more appealing.
Proactive risk management strategy.
Now is when risk management gets a bit more “hands on”. The stakes are higher, and more finances are at risk. You may choose to delegate insurance responsibility to a leader with operations or risk management experience.
Welcome to Vouch Scale!
Time to meet your Vouch Scale Team. At this stage, ownership of your account will likely transition to a dedicated Scale account manager. This means a deeper partnership with Vouch and access to industry-specific risk specialists to ensure that you’re taking a proactive approach towards risk management.
Landing your first whale.
Big clients come with high expectations–especially if they’re used to partnering with established companies. Customers often have their own insurance requirements, so you should review your policies to make sure they’re aligned.
Scaling up your resources.
It’s time to add more specialized roles to help accelerate growth. As you increase your headcount, more team members will have access to sensitive financial information, and the risk of employment litigation increases overall.
Crime insurance helps mitigate the losses if a bad actor within your company were to commit certain types of financial fraud.
Adding more benefits helps to attract the best talent. Fiduciary Liability insurance is designed to cover mistakes and oversights in benefits administration.
Employee Benefits Liability
Employee Benefits liability offers protection for claims arising out of errors or omissions in the administration of employee benefits programs.
Series B, C, & Beyond
Accelerating the Momentum.
You've achieved product-market fit and it's time to scale. Risk management becomes more complex as your company grows, so ensure your Vouch Insurance Advisor is connected with your expanding risk team.
HOW WE HELP
Talk to an expert
Reach out to your Account Manager at the “celebration” moments. This includes revenue, fundraising, hiring, and product milestones.
Weathering the storm.
Of course, you never know when it will happen, but by this stage there’s a good chance you’ve experienced your first claim, whether it’s a broken laptop or an employee lawsuit.
Managing Unique Risks
Building a more tailored package.
There are many reasons why you may need specialty insurance. Perhaps you need coverage for specific risks like Warehouse Management Liability or Medical Malpractice Insurance. Or maybe you need a more comprehensive program with higher limits.
Entering a new chapter.
It’s the moment you’ve been working towards! Whether you’re being acquired or introducing your IPO, make sure you’re covered before and after the i’s are dotted and t’s are crossed.
Tail coverage can protect your company from claims that are reported after your insurance policy ends. Specifically, D&O tail coverage is important if your company is being acquired, because it offers protection from wrongful acts that occurred prior to the acquisition. Learn more.
Reps and Warranties
If your company is being acquired, you should add reps and warranties insurance. This policy covers situations where there has been a breach of the representations in the transaction agreements.
If you’ve decided to go public, you will need to switch from a Private D&O policy to a Public D&O policy.