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Insurance Coverage Guide

A guide to insurance coverage for startups.

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What's included

Coverage Types
- D&O insurance
- E&O / professional liability
- Cyber insurance
- General liability
- Property insurance
- Key person insurance
Coverage Decisions
- Coverage requirements
- Limit setting
- Deductible optimization
Management
- Broker selection
- Renewal process
- Claims management

Best used when

Reviewing insurance program
Post-fundraise insurance update
Annual renewal preparation
Board insurance discussion

Why this is Gold

Insurance is risk transfer. This guide ensures appropriate coverage.

The template

The Template

INSURANCE PHILOSOPHY

Understanding Startup Insurance

INSURANCE FUNDAMENTALS

WHY INSURANCE MATTERS:
☐ Transfers risk to insurers
☐ Protects company assets
☐ Protects personal assets (D&O)
☐ Required by customers/investors
☐ Enables business continuity

CEO'S ROLE IN INSURANCE:
☐ Ensure adequate coverage
☐ Understand key policies
☐ Review annually
☐ Respond to incidents properly
☐ Communicate to board

THE INSURANCE REALITY:
"Insurance is the last line of defense.
It doesn't prevent problems - it limits
financial damage when problems occur.
The CEO must ensure the company has
appropriate coverage for its risks."

INSURANCE PRINCIPLES:
1. Insurance is risk transfer
2. Coverage must match exposure
3. Limits should increase with growth
4. Read exclusions carefully
5. Claims history affects premiums

KEY INSURANCE TYPES:
D&O: Protects directors/officers personally
E&O: Covers professional mistakes
Cyber: Covers data breaches and cyber events
GL: Covers bodily injury/property damage
EPLI: Covers employment claims
Property: Covers physical assets
Key Person: Covers loss of key individuals

COMMON INSURANCE MISTAKES:
☐ Insufficient D&O limits
☐ Cyber coverage too low
☐ Not updating after fundraise
☐ Not reviewing exclusions
☐ Delayed incident reporting

COMPREHENSIVE INSURANCE FRAMEWORK

Insurance Coverage Framework

═══════════════════════════════════════
INSURANCE COVERAGE GUIDE
═══════════════════════════════════════

COMPANY: _______________
Assessment Date: _______________
Insurance Broker: _______________
Policy Year: _______________

═══════════════════════════════════════
SECTION 1: REQUIRED COVERAGE
═══════════════════════════════════════

D&O (DIRECTORS & OFFICERS):
┌─────────────────────────────────────┐
│ D&O INSURANCE                       │
│                                     │
│ Why needed:                         │
│ Protects directors/officers from    │
│ personal liability for decisions    │
│                                     │
│ Current policy:                     │
│ Carrier: _______________            │
│ Limit: $_____                       │
│ Retention: $_____                   │
│ Premium: $_____/year                │
│ Renewal: _______________            │
│                                     │
│ Coverage components:                │
│ ☐ Side A (personal, no indemnity)  │
│ ☐ Side B (reimbursement)           │
│ ☐ Side C (entity securities)       │
│                                     │
│ Key exclusions:                     │
│ ☐ _______________                   │
│ ☐ _______________                   │
│                                     │
│ Adequate for:                       │
│ ☐ Current cap table complexity     │
│ ☐ Board size and composition       │
│ ☐ Upcoming fundraise               │
└─────────────────────────────────────┘

E&O / PROFESSIONAL LIABILITY:
┌─────────────────────────────────────┐
│ E&O INSURANCE                       │
│                                     │
│ Why needed:                         │
│ Covers claims from professional     │
│ services or product failures        │
│                                     │
│ Current policy:                     │
│ Carrier: _______________            │
│ Limit: $_____                       │
│ Retention: $_____                   │
│ Premium: $_____/year                │
│ Renewal: _______________            │
│                                     │
│ Coverage for:                       │
│ ☐ Negligent acts/errors            │
│ ☐ Omissions                        │
│ ☐ Breach of duty                   │
│ ☐ Product failure                  │
│                                     │
│ Key exclusions:                     │
│ ☐ _______________                   │
│ ☐ _______________                   │
└─────────────────────────────────────┘

CYBER LIABILITY:
┌─────────────────────────────────────┐
│ CYBER INSURANCE                     │
│                                     │
│ Why needed:                         │
│ Covers costs from data breaches,    │
│ ransomware, and cyber incidents     │
│                                     │
│ Current policy:                     │
│ Carrier: _______________            │
│ Limit: $_____                       │
│ Retention: $_____                   │
│ Premium: $_____/year                │
│ Renewal: _______________            │
│                                     │
│ First-party coverage:               │
│ ☐ Breach response costs            │
│ ☐ Forensics                        │
│ ☐ Notification                     │
│ ☐ Credit monitoring                │
│ ☐ Ransomware payment               │
│ ☐ Business interruption            │
│ ☐ Data restoration                 │
│                                     │
│ Third-party coverage:               │
│ ☐ Regulatory fines                 │
│ ☐ Legal defense                    │
│ ☐ Settlements                      │
│ ☐ PCI fines                        │
│                                     │
│ Key exclusions:                     │
│ ☐ War/terrorism                    │
│ ☐ Known vulnerabilities            │
│ ☐ _______________                   │
└─────────────────────────────────────┘

GENERAL LIABILITY:
| Element | Details |
|---------|---------|
| Carrier | |
| Limit (occurrence) | $ |
| Limit (aggregate) | $ |
| Premium | $/year |
| Renewal | |

WORKERS COMPENSATION:
| Element | Details |
|---------|---------|
| Carrier | |
| States covered | |
| Premium | $/year |
| Mod rate | |

═══════════════════════════════════════
SECTION 2: RECOMMENDED COVERAGE
═══════════════════════════════════════

EMPLOYMENT PRACTICES LIABILITY (EPLI):
| Element | Details |
|---------|---------|
| Carrier | |
| Limit | $ |
| Retention | $ |
| Premium | $/year |
| Covers | ☐ Discrimination ☐ Harassment ☐ Wrongful term |

KEY PERSON INSURANCE:
| Person | Role | Coverage | Premium |
|--------|------|----------|---------|
| | CEO | $ | $ |
| | CTO | $ | $ |
| | | $ | $ |

PROPERTY INSURANCE:
| Element | Details |
|---------|---------|
| Coverage type | ☐ Replacement ☐ Actual value |
| Limit | $ |
| Covers | ☐ Office ☐ Equipment ☐ Inventory |

BUSINESS INTERRUPTION:
| Element | Details |
|---------|---------|
| Coverage period | ___ months |
| Limit | $ |
| Waiting period | ___ days |

═══════════════════════════════════════
SECTION 3: COVERAGE LIMITS GUIDE
═══════════════════════════════════════

RECOMMENDED LIMITS BY STAGE:
| Coverage | Pre-Seed | Seed | Series A | Series B+ |
|----------|----------|------|----------|-----------|
| D&O | $1M | $2-3M | $5-10M | $10-20M+ |
| E&O | $500K | $1M | $2-5M | $5-10M |
| Cyber | $500K | $1M | $3-5M | $5-10M+ |
| GL | $1M | $1M | $1-2M | $2M |
| EPLI | Optional | $500K | $1-2M | $2-5M |

YOUR CURRENT COVERAGE:
| Coverage | Current | Recommended | Gap |
|----------|---------|-------------|-----|
| D&O | $ | $ | $ |
| E&O | $ | $ | $ |
| Cyber | $ | $ | $ |
| GL | $ | $ | $ |
| EPLI | $ | $ | $ |

═══════════════════════════════════════
SECTION 4: ANNUAL REVIEW
═══════════════════════════════════════

COMPANY CHANGES SINCE LAST RENEWAL:
| Change | Details | Insurance Impact |
|--------|---------|------------------|
| Revenue | $_____ → $_____ | |
| Employees | ___ → ___ | |
| Fundraise | $ raised | D&O increase |
| New markets | | |
| New products | | |
| M&A | | |
| Claims | | |

COVERAGE ADEQUACY CHECK:
| Coverage | Adequate | Action Needed |
|----------|----------|---------------|
| D&O | ☐ Yes ☐ No | |
| E&O | ☐ Yes ☐ No | |
| Cyber | ☐ Yes ☐ No | |
| GL | ☐ Yes ☐ No | |
| EPLI | ☐ Yes ☐ No | |
| Workers Comp | ☐ Yes ☐ No | |

RENEWAL PREPARATION CHECKLIST:
☐ Loss runs requested (60 days before)
☐ Claims history updated
☐ Financial statements ready
☐ Employee count confirmed
☐ Revenue forecast provided
☐ New exposures documented
☐ Broker meeting scheduled
☐ Competitive quotes obtained

═══════════════════════════════════════
SECTION 5: CLAIMS MANAGEMENT
═══════════════════════════════════════

CLAIMS REPORTING PROCESS:

WHEN TO REPORT:
☐ Any actual claim received
☐ Any potential claim (threat of suit)
☐ Cyber incident (even if minor)
☐ Employee complaint (EPLI)
☐ Securities demand letter (D&O)

REPORTING CONTACTS:
| Coverage | Contact | Phone | Email |
|----------|---------|-------|-------|
| D&O | | | |
| E&O | | | |
| Cyber | | | |
| GL | | | |
| EPLI | | | |

CLAIMS LOG:
| Date | Type | Description | Status | Resolution |
|------|------|-------------|--------|------------|
| | | | | |
| | | | | |

═══════════════════════════════════════
SECTION 6: BOARD SUMMARY
═══════════════════════════════════════

INSURANCE SUMMARY FOR BOARD:

| Coverage | Limit | Premium | Renewal |
|----------|-------|---------|---------|
| D&O | $ | $ | |
| E&O | $ | $ | |
| Cyber | $ | $ | |
| GL | $ | $ | |
| EPLI | $ | $ | |
| **Total** | | $_____ | |

KEY CHANGES FROM LAST YEAR:
_______________________________________________

RECOMMENDATIONS:
☐ _______________
☐ _______________

Coverage Limits by Stage

Coverage	Seed	Series A	Series B	Series C+
D&O	$1-2M	$5-10M	$10-15M	$15-20M+
E&O	$1M	$2-5M	$5-10M	$10M+
Cyber	$1M	$3-5M	$5-10M	$10M+
GL	$1M	$1-2M	$2M	$2M
EPLI	$500K	$1-2M	$2-5M	$5M+

Insurance Review Checklist

Review Item	Status	Action
D&O matches cap table	☐
Cyber matches data volume	☐
E&O covers all services	☐
International coverage (if needed)	☐
Key person coverage	☐
Claims history reviewed	☐
Competitive quotes obtained	☐

Frequently asked questions

What is the Insurance Coverage Guide?

A guide to insurance coverage for startups.

Who is the Insurance Coverage Guide for?

It is built for CEOs and their teams working on Risk Management. The AI coach adapts it to your company, stage, and goals.

How long does the Insurance Coverage Guide take to use?

It saves roughly 35+ hours versus building from scratch. Our AI coach can tailor the playbook to your situation in minutes, then hand you a step-by-step plan.

Is the Insurance Coverage Guide free?

Yes. You can read the full playbook and start getting coached through it for free. Sign in to save your tailored version and track your next steps.

How does the AI coach help with the Insurance Coverage Guide?

The coach teaches you the framework, asks a few questions about your business, tailors the playbook to you, and gives you measurable next steps to execute.