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Claim Examples
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Approximate
Pricing
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General Liability
Insurance
|
- Your sales rep spills coffee
on a client when meeting at a coffee shop, causing severe burns.
- A child chokes on the
connected wearable device you’ve designed and marketed.
- A competitor sues for
defamation, libel, or even copyright infringement based on the content
of your website or your advertising campaign.
|
$1M per occurrence and $2M aggregate is the
standard starting point for any startup.
Approximate pricing: $500-2,000
per year
|
Worker’s Compensation
Insurance / Disability Insurance
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- Employees injuring themselves on the job, whether at the job or not. Think slips, falls, and
spills.
- A programmer suffers from carpal tunnel from all the code he’s writing.
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A good starting point is usually $1M in coverage
Approximate pricing: $300-500 per salaried employee per year
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Errors and Omissions
Insurance
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- An actual bug in your SaaS
marketing/sales platform that causes users to lose money—payments aren’t
processed, leads aren’t recorded, etc.—that leads to a class action
lawsuit.
- Your product/service doesn’t
live up to your customer’s expectations; the customer alleges you
haven’t honored company policies or contractual obligations.
- Your customer claims you’ve
violated the terms of the user agreement and sues for misrepresentation
or violation of contract. Even if the allegation is borderline
frivolous, you’ll still have to pay a lawyer to deal with it. These
costs are covered by E&O policies.
|
$1M is a good starting point
Approximate pricing: $1,500-4,000
per year
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Cyber Liability Insurance
|
- Your AWS databases are hacked and your users sue you
for leaking information.
- An employee leaves a laptop or phone in a cab that’s
picked up by someone who leaks private user data.
- You suspect there may have been a breach and you have
to notify your users to comply with individual state laws regarding
breach notification procedures.
- You’re hit with a DDoS attack and you have to shut
down your site for a few days, causing lost profits and expenses to
build up.
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Approximate pricing: $1,500-4,000 per year
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Employment Practices
Liability Insurance
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- Lawsuits for violating
employment laws around race/gender/age discrimination and/or
discriminatory hiring/firing practices.
- Sexual harassment or hostile
work environment lawsuits.
- Wrongful termination
lawsuits.
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Approximate pricing: $3,000-8,000
per year
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