SaaS Business Insurance

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Why do software as a service (SaaS) companies need business insurance?

A service outage could be financially devastating for a small SaaS provider or startup. Business insurance covers the cost of lawsuits brought by customers harmed by a disruption. It can also pay for property damage and injuries. Some policies, such as workers' compensation, may be required by law.

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Find the right coverage

Insureon helps SaaS business owners find insurance coverage that matches your unique risks.

Get free expert advice and peace of mind knowing you have the right property and liability coverage for your SaaS company.

What types of insurance do SaaS businesses  need?

These insurance policies cover the most common risks of SaaS companies.
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Technology errors and omissions insurance

Technology E&O insurance, also called professional liability insurance, can cover lawsuits related to problems with your SaaS solutions for clients, such as outages and lost data.

  • Service downtime that harms clients
  • Problems with service functionality
  • Misrepresentation in a contract
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Cyber insurance

Also called cybersecurity insurance, this policy covers financial losses from cyberattacks and data breaches. It's recommended for any SaaS business that handles personal information.

  • Customer notification expenses
  • Fraud monitoring services
  • Other costs related to cyber risks
General liability insurance icon

General liability insurance

This policy covers basic risks, such as a client who trips on a loose cable at your SaaS office and suffers an injury. Bundle it with commercial property insurance for savings in a business owner’s policy.

  • Customer bodily injuries
  • Customer property damage
  • Libel and other advertising injuries
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Fidelity bonds

Fidelity bonds provide compensation for SaaS businesses and their clients if an employee steals from them. They're sometimes called employee dishonesty bonds or crime insurance.

  • Employee theft or fraud
  • Unlawful data access by an employee
  • Illegal funds transfer by an employee
Workers’ compensation insurance icon

Workers’ compensation insurance

Most states require workers' comp for businesses that have employees. It also protects sole proprietors from work-related injury costs that health insurance might deny.

  • Medical payments for work injuries
  • Disability benefits
  • Lawsuits from employee injuries
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Commercial auto insurance

Commercial auto insurance covers the cost of an accident involving your company's vehicle. Each state has its own requirements for auto liability insurance.

  • Car accidents
  • Vandalism and theft
  • Weather damage
Looking for different coverage? See more policies.

How much does SaaS business insurance cost?

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A small business that offers a single SaaS product will pay less for insurance than a larger software company that runs several SaaS platforms for clients.

Factors that affect insurance pricing include:

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How do I get SaaS business insurance?

It's easy to get the right SaaS insurance if you have your company information on hand. Our insurance application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:

  1. Complete a free online application
  2. Compare insurance quotes and choose policies
  3. Pay for your policy and download a certificate

Insureon's licensed agents work with top-rated U.S. insurance companies to find coverage that fits your small tech company, whether you work independently or hire employees.

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