Insurance for Startups: What You Actually Need (and What You Don’t)

Greenspan was testing a prototype that helped farms measure their carbon impact. The team ran small trials, visited client sites, and pitched to investors. 

Then, one afternoon, a farmer tripped over a power cord during a demo and fractured his wrist. The injury claim was not huge, but it was enough to make Olivia realise something important. Risk does not wait until you scale. 

Olivia had arranged Workers Compensation as a legislated requirement, A “start-ups guidebook” from her local business development group had given her that suggestion. But his injury for someone other than a worker led her to buy the company’s first insurance policies. Basic Public and Product Liability and Cyber Cover. It was not glamorous, but it meant one accident or data breach would not end the business before it began. 

She also trademarked her brand and reviewed her contracts, making sure no early partner could claim ownership of her work. It was her first real lesson in governance, and it arrived sooner than expected. 

A year later, Greenspan landed its first enterprise client, a regional agribusiness that wanted carbon reporting across multiple properties. 
The deal was transformative. But before signing, the client asked one question that changed everything. 

“Can you send through your insurance certificate?” 

That single question forced Olivia to mature the business overnight. With advice from her broker, she added: 

• Professional Indemnity (PI): to protect against claims if her software’s analysis caused financial loss. 
• Management Liability: to protect the leadership team from governance or employment related claims. 
• Business Interruption: to safeguard against loss of income from a system outage or supplier issue. 
• Business Property: for office equipment and electronic equipment used in the field. 

These were not expenses. They were enablers. Having the right cover did more than meet contractual requirements. It built trust. Clients saw a company that understood accountability. 

By 2025, Greenspan had grown to 40 employees and expanded into Asia Pacific. 
The company’s exposure changed again. It was now managing thousands of data points for clients across industries, including confidential reports tied to investment portfolios. 

When a system glitch accidentally shared one client’s report with another, the potential for damage was enormous. Fortunately, Greenspan had Cyber and Privacy Liability cover, which supported the investigation, response, and communication process. 

That moment proved that insurance was not just about recovery. It was about credibility. The fast response helped preserve investor confidence and client trust. 

From there, Olivia changed from Management Liabiilty coverage to: 

• Directors and Officers (D&O): to protect leadership from governance and disclosure claims. 
• Employment Practices Liability: as hiring expanded across multiple regions. 

Greenspan had evolved from a startup into a trusted institution, and its insurance program had evolved alongside it. 

When the company closed its Series B round, investors conducted a full governance review. Among the usual finance and ESG checks, one comment stood out. 

“You’ve clearly thought about your risks. Most startups your size haven’t.” 

That validation was not just about premiums. It was about foresight. The early decisions Olivia made, the simple policies she had put in place when no one was watching, had become proof of governance maturity. 

Now insurance was more than protection. It was a symbol of structure, confidence, and accountability. 

Every founder starts with ambition. The ones who last build structure around it. 

Insurance is not about predicting disaster. It is about removing the fear that slows you down. It evolves with your business, transforming from survival gear into a governance tool. 

Insurance evolves after catastrophe, but real resilience comes from anticipating blind spots before they break. 

For founders like Olivia, the takeaway is simple. 

• Protect what you have now, not what you hope to have later. 
• Review cover every time your business changes shape. 
• Treat insurance as part of growth strategy, not red tape. 

Because risk does not scale with you. It races ahead. 

_{DISCLAIMER: This information is provided to assist you in understanding the risks, implications, and common considerations for your industry.  It does not constitute advice and is not complete. Please contact Knightcorp Insurance Brokers for further information.} 

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