Yes! Even the tiniest startup may have large businesses as partners (beta clients, research partners, investors, landlords) that may require you to have insurance (General Liability, Errors & Omissions…) in order to protect their own interests. Your outside board members may demand Directors & Officers Liability insurance to protect themselves against lawsuits relating to their board work. In a competitive recruiting environment, Group Benefits (Health, Disability, Dental, Vision…) may help you land top talent. And government regulations may require you to have certain coverages (Workers’ Comp, Family Medical Leave).

A Certificate of Insurance (COI) is a short document that summarizes your Liability insurance coverages. This would include General Liability, Auto Liability, Umbrella/Excess Liability and Workers’ Comp. It is a standard form used across the insurance industry. Your business partners (landlords, clients, licensing authorities…) may request a COI to confirm that you have appropriate insurance coverages. The entity requesting a COI from you is called the “Certificate Holder” and their name and mailing address are listed on the COI. The COI may also indicate if the Certificate Holder has any special status under your policies, such as Additional Insured or a Waiver of Subrogation in their favor. It is important to note that a COI cannot change the underlying coverages or limits on your policies. The COI is only a summary of what is already included in your policies.

Directors & officers (D&O) Liability insurance protects the personal assets of your company’s directors and officers in the event they are personally sued for actual or alleged wrongful acts in leading and supervising the company. Claims that reach the board level may include breach of fiduciary duty, misuse of company funds, employment discrimination or harassment, theft of intellectual property, and corporate governance failures. Outside board candidates often require D&O insurance before accepting an appointment. D&O typically includes coverage for legal defense costs.

Technology Errors & Omission (E&O) insurance is a form of Professional Liability insurance. It covers the content of your work. Potential claims could include an error in your software that caused a customer to miss recording sales for a day, or your failing to meet a delivery deadline that forced a business partner to delay their own product launch. E&O typically includes coverage for legal defense costs.

Cyber liability insurance helps protect your business from the costs of cyberattacks and accidental data leaks. If someone illicitly gains access to your network, and damages your business, the operations of your business partners, or exposes others’ personally identifiable information, Cyber Liability applies. Cyber Liability differs from Tech E&O in that Cyber primarily covers the acts of third-party bad actors, while E&O covers errors in your own services or products.

General Liability covers businesses for injury or property damage caused by a business’s operations and products, or injuries that occur on the business’s premises. A memory device is that General Liability covers injuries or damage to the general public for which you are found legally liable. An example General Liability claim is a potential investor who trips and falls while visiting your office for due diligence.