top of page
Protect Your Startup: Essential Guide for Startup Coverages Pt 2
Part 2: Protect Your Startup: Essential Guide for Startup Coverages, What to get, When to get it
This is Part 2 to the "Protecting your Startup" Series. Below we're covering a few more essential insurance coverages your business will need and a table of milestones/ trigger events that you as the founding team to be monitoring for when certain coverages should be in place. Reach out to us at www.usnci.com/contact for more info!
6. Workers’ Compensation Insurance
When to Get It: As soon as you hire your first employee; legally required in most states.
Trigger Point: Hiring full-time staff beyond founders/contractors.
What It Covers:
Medical expenses and lost wages for employees injured on the job.
Why It’s Important: Protects both employees and employers from the financial burden of workplace injuries.
7. Intellectual Property (IP) Insurance
When to Get It: If your startup holds patents, trademarks, or copyrights critical to its business model.
Trigger Point: Filing IP applications or entering markets with competitors who may challenge your rights.
What It Covers:
Legal costs for defending against IP infringement claims.
Enforcement costs if competitors infringe on your IP rights.
8. Business Interruption Insurance
When to Get It: Once your startup becomes reliant on physical assets like servers, offices, or manufacturing facilities.
Trigger Point: Experiencing downtime risks due to natural disasters, cyberattacks, or equipment failure.
What It Covers:
Lost income and operational expenses during disruptions caused by covered events.
Key Milestones & Coverage Triggers
Milestone/Trigger Event | Recommended Coverage(s) |
Business registration | General Liability (CGL), Workers’ Compensation |
Launching a product/service | Technology E&O, Cyber Liability |
Hiring employees | Workers’ Compensation |
Raising venture capital | D&O Insurance |
Entering distribution agreements | Product Liability |
Filing patents/trademarks | Intellectual Property |
Experiencing significant growth | Excess/Umbrella Liability |
Final Tips for Tech Startups
Start Small but Plan Ahead: Begin with essential coverages like CGL and workers’ compensation but be ready to expand as your business grows.
Consult Experts Early On: Work with brokers who specialize in tech startups to identify tailored solutions.
Review Policies Regularly: As your company evolves—scaling operations, hiring more staff, or entering new markets—update your coverage accordingly.
By proactively addressing these insurance needs at key stages of growth, tech startups can mitigate risks while focusing on innovation and scaling their business successfully.
Find out more with us at New Century.
bottom of page