Miami tech is booming. But in the rush to "move fast and break things," make sure you don't break your bank account with a preventable lawsuit.
Key takeaways:
- General Liability doesn’t cover software mistakes—E&O does.
- Cyber Liability is a core startup risk if you store customer data.
- Collect COIs for contractors to avoid surprise liability.
1. Does General Liability cover tech errors?
General Liability (GL) covers slip-and-falls and property damage. If you are a SaaS company, you don't have much foot traffic. Your risk is in your code.
If your software bug crashes a client's database and costs them revenue, GL won't pay. You need Professional Liability (E&O).
2. Are startups really targets for cyberattacks?
You might think, "We are too small to be hacked." Hackers actually prefer small startups because your security is weaker than Google's. If you store customer data (emails, credit cards), you are a target.
Cyber insurance covers:
- Ransomware payments (crypto demands).
- Legal fees for notifying customers of a breach.
- PR costs to save your reputation.
3. Why should you require COIs from contractors?
Using 1099 developers or marketers? If they get injured on your premises or cause damage to a client, you could be liable. Always ask contractors for a Certificate of Insurance (COI) or have a solid contract indemnifying you.
4. When do you need key person insurance?
If you are raising VC money, investors often require this. It's a life insurance policy on the Founder/CEO. If something tragic happens to the visionary, the payout gives the company runway to pivot or hire a replacement without going bankrupt immediately.
WYN Tip:
We offer a "Startup Pack" that bundles GL, E&O, and Cyber into one policy specifically designed for high-growth tech companies.