What is New Technology Business?
New technology businesses include startups and early-stage companies that develop, manufacture, sell, or support hardware, software, apps, or tech-enabled services. These firms face a mix of traditional small-business exposures (property and general liability) and technology-specific risks such as data breaches, product defects, and intellectual property disputes.
Who needs it
Founders, small technology firms, SaaS providers, hardware manufacturers, app developers, and tech retailers commonly seek this coverage. Organizations that lease office space, ship prototypes, collect customer data, or provide professional advice should consider protections tailored to their operations.
What it typically covers
Coverage can combine several policies to match the risk profile of a tech business:
- Commercial general liability for third-party bodily injury or property damage.
- Professional liability / errors & omissions (E&O) for software bugs or consulting mistakes.
- Cyber liability for data breaches, privacy incidents, and costs to notify customers.
- Property coverage for offices, servers, and inventory; equipment coverage for prototype devices.
- Business interruption that helps replace lost income after covered disasters.
- Commercial auto exposure if the business owns or uses vehicles for deliveries or services.
Many new tech firms start with a combination policy and add cyber or E&O limits as contracts and customers require. For more detailed program options, see the New Technology Business Insurance storefront and the Technology business insurance overview.
Common exclusions or limitations
Typical exclusions may include known prior acts, intentional wrongdoing, patent disputes, and certain regulatory fines. Cyber policies often exclude acts of war or nation-state attacks, and some E&O policies limit coverage for unvetted open-source code. Underwriting may require documented security controls, formal development processes, or asset inventories.
Factors that influence cost
Underwriters look at several underwriting factors when pricing a policy: annual revenue, number of employees, type of product or service, data sensitivity, contract obligations, security practices, claims history, and location of operations. Using secure coding practices, strong access controls, and vendor management can lower premiums. A simple risk scenario: a prototype shipped without proper packaging suffers damage in transit and results in client delays and refund requests — that sort of property and liability exposure affects underwriting.
Proof of insurance & compliance
Customers, landlords, and contract partners often request certificates of insurance showing liability and professional limits. Some enterprise contracts require specific wording or cyber limits; provide these documents early during negotiations to avoid delays. If you need contract-specific language, discuss it with your broker or team and have your insurer issue an endorsement.
How to get a quote
Gather basic company details (revenue, employee count, descriptions of products/services, existing controls like encryption or backups). Provide any contracts that require minimum limits. If you're unsure about which limits or endorsements you need, talk to your agent.
Frequently Asked Questions
Do startups need cyber insurance right away?
Many do once they collect, store, or process customer data; cyber coverage helps with breach response, notification, and related costs. Evaluate based on data sensitivity and contractual obligations.
What’s the difference between E&O and general liability?
General liability covers bodily injury and property damage to third parties. E&O (professional liability) covers financial losses from professional services or product failures, such as software errors or missed deliverables.
Can I add coverage as my company grows?
Yes. Policies and limits can be adjusted as revenue, headcount, and contractual requirements change. Regularly review coverage with your broker as you scale or enter new markets.
Still have questions? Talk to a local insurance expert.