Insurance has a critical role in any tech company, whether it’s a start-up, securing seed money, or pathing toward an IPO or acquisition. Companies should keep in mind that their insurance needs will change and grow throughout that life cycle; therefore, those needs should be evaluated on a regular basis.
The Start-Up Stage. Most start-ups begin with a “business owners policy” (“BOP”), which covers bodily injury, property damage, and certain advertising and personal injuries. If the company has any employees, it must also purchase workers compensation coverage, which is required by law. These policies generally do not entail a significant premium investment and provide “basic needs” coverage.