Startup Insurance: Business Insurance Quotes From $5

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The word startup is a trendy term these days, thanks to the massive growth in entrepreneurship and small business. When most people think of a startup, they tend to think of huge Silicon Valley-based tech startups or new social media platforms. However, a startup can really be any business. Perhaps you’re offering a revolutionary new phone, creating a new e-commerce platform , or a new piece of software. 

At its core, a startup is just a business that’s built from the ground up. This means that there usually isn’t a huge budget, and the founding partners typically work long hours for little pay… that is, until they hit their big break, start crushing sales or start landing some great clients. While some startups fail before they have a chance to make serious money, there are plenty of startups that go on to become massive brands. Just look at Apple, Facebook, or even Birddogs. All of these huge publicly traded brands started as an idea among a few friends. 

When you’re first creating your startup, one of the first things that you should consider is purchasing insurance for your business. 

In this post, we’ll show you exactly why you need startup insurance and what types of startup insurance coverage you’ll need to look into. Then, we’ll outline some of the general business insurance cost for startup and review some of the best startup business insurance companies on the market. It’s time to get you covered! 

Also read: Sole Proprietor Insurance: Cost & Quotes From $11

All Startups Should Have Startup Insurance

No matter what type of product your startup is selling or service its offering, a comprehensive startup insurance policy Is a must-have. It will protect you from legal claims, employee claims, or even customer claims that come your way. These claims may be small in nature or full-blown lawsuits. Ultimately, the only way to truly protect yourself and your startup is to make sure it has the right coverage.

For example, you could release a piece of software prematurely that ends up being full of small glitches that nobody noticed. Suddenly, you’re facing tens of thousands of dollars worth of returns, claims, or lawsuits regarding your product. Or, perhaps, you have an office that’s still under construction, and a half-hung sign falls on one of your investors’ heads, causing them an expensive emergency room visit and stitches. 

When it comes to insurance claims, you can never underestimate what could happen. The chances are that if you can think of it, it has happened before. Without insurance to shield you from these random accidents and mishaps, the founders of a startup could be left to pay these claims out of their own pocket, which could quickly bankrupt the entire startup. 

Also read: Corporation Insurance: Liability Insurance for Corporations

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Best Business Insurance for Tech Startups

Now that you understand why you need start up business insurance coverage for your new LLC, you’re probably wondering what the best start up insurance for your company is. If you do a quick online search on business insurance, you’re likely to come up with hundreds of different options, all quoting vastly different premium costs.

To make your life exponentially easier, we’re going to explain what is the best insurance for startups based on the way that your startup company is set up.

D&O Insurance for Startups

If there are multiple founding partners or controlling managers, then D&O insurance for startups is a great “cover-your-back” policy to get. Directors and Officers Insurance (D&O for short) covers claims made against managers or officers of the company.

For example, if a general manager is underperforming, then your employees could get together and sue the manager for their failure to complete their company duties. Another common scenario could be a potential vendor or investor suing your company if you fail to meet product launch deadlines.

D&O insurance ensures that the officers and directors of the company will not be held personally liable for these lawsuits. If a claim is made, the D&O insurance company will handle all of the legal costs and pay the claim if the battle is lost in court. This, in turn, protects your managing officers, their families, and their assets from being held in the balance.

Read more about D&O insurance

General Liability Insurance for Startups

General liability coverage is probably the most popular type of business insurance for tech startups. Many people describe it as a “cover-all” insurance policy covering various aspects of product liability, injury liability, employee claims, and more. If your startup is just in its infancy, then a general liability insurance policy should be the first thing that you look into.

That being said, general liability insurance coverage can vary from one company to another. So, it’s a good idea to question your insurance agent to make sure that your general liability policy covers all of the basics that your startup needs.

Read more about general liability insurance

Additional Startup Coverage

While general liability insurance and D&O insurance coverage for startups is a great place to start, you may find that you need additional coverage as your business continues to grow. When it comes to your startup insurance policy, you never want to be too frugal. If and when you face a big claim one day, you’ll need all of the coverage that you can get. Most would agree that paying a few hundred bucks per month is well worth saving hundreds of thousands in a lawsuit!

So, that being said, here are some of the other popular startup insurance coverages that your small business may need.

Professional Liability Insurance for Startups

Suppose your startup is offering a service (e.g., consulting, security, or other non-product services). In that case, a professional liability insurance policy will protect you from claims coming from unsatisfied clients or customers. For example, a client could sue your startup for failing to live up to the value they expected from a certain service. Professional liability will handle legal fees and payout claims if they’re lost.

Product Liability Insurance for Startups

On the other hand, if your startup is selling a product, then a product liability insurance policy is a must-have. While general liability insurance typically covers some aspects of product liability claims, it often isn’t as comprehensive as a dedicated product liability insurance policy.

Read more about product liability insurance

Public Liability Insurance for Startups

If you have an office that’s open to the public, then a public liability insurance policy for startups may be something that you’ll need to consider. As with the previous type of coverage we mentioned, some aspects of public liability may be covered in your general liability policy, but it often won’t be as inclusive as you may need.

Public liability insurance is designed to protect you and your business from claims coming from third-party visitors or customers (i.e., the public ) against your business premises. This could be as simple as surrounding neighbors who don’t like your sign/advertising or something more serious, like the dangerous structural integrity of your office building.

Workers’ Comp Insurance for Startups

If you have more than 5 employees at your startup, then you should consider a workers’ comp insurance policy. In addition to protecting you and your business from claims coming from employees who are injured on the job, a workers’ compensation policy can also benefit your employees.

For example, suppose an employee is severely electrocuted while setting up the new computer lab. In that case, your workers’ comp policy should pay for all of their medical bills, any physical therapy/rehab they need and will also compensate them for lost wages during their recovery time. This ensures that the employee can come back to work once fully healed and resume their normal duties without financial or physical strain.

Read more about workers compensation insurance

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Startup Business Insurance Costs Comparison

Wondering how much does business insurance cost for startup? Well, this section should give you a good idea of what to expect for your startup insurance costs. On average, most startups with less than 10 employees pay between $345 and $520 per year for a $1,000,000/$2,000,000 general liability policy. This translates to between $28.75 and $43.33 per month in business insurance costs for startup companies. 

Below, we’ve included a comparison of the average rates quoted by several of the top small business insurance providers that specialize in tech startups. 

Insurance ProviderAverage Monthly RateAverage Annual RateBest for
Embroker Insurance$31$372Small tech startups who specialize in providing a product or service to a limited audience
Coverwallet$33$396Cheapest startup insurance quotes comparison online for all startup business sizes 
Thimble$36$432On-demand startup insurance policies

Keep in mind that the quotes above are just averages that are taken from surveying startup company insurance policies across the board. Your own rates may vary and could be cheaper or costlier, depending on factors, such as:

  • Your credit history. 

  • How many employees you have. 

  • What type of product or service you’re offering. 

  • Whether or not you have a public office building. 

  • If you’ve paid any previous business claims. 

Find Cheap Startup Insurance Today!

Wondering how to get cheap startup insurance? Well, there are the obvious things you can do would be to fix your credit or bundle your business insurance policy with other existing policies. However, the best way, by far, to find cheap business insurance is to compare quotes. Most small business insurance providers are literally fighting for your business, which means that comparing quotes is the best way to get competitive pricing that you won’t get from going directly through an agent. 

If you’re ready to compare quotes today and get your customized startup business insurance rates, just click the ‘ Get Quotes ’ button below! By the end of the day, you’ll be able to compare quotes from top insurers in the nation, allowing you to choose the cheapest and most comprehensive policy possible. 

Best Startup Insurance Companies

The table above is a good place to start if you’re wondering how much money to set aside for your insurance budget. However, it also helps to have a little bit of a background on some of the companies that you’ll be looking at. In this section, we’ve reviewed several of the companies that offer the best insurance for startups. Let’s take a look at the pros, cons, and pricing of the $1 million general liability coverage of the best startup insurance companies. 

Embroker Insurance

Embroker Insurance is a relatively new insurance company that was only recently regarded as a startup itself. Founded by Matt Miller in 2017, Embroker Insurance is one of the few “digitally-native” insurance companies on the market. This means that they don't have any physical offices and handle all of their policies and claims online. This significantly reduces the average cost of insurance paid by policyholders. 

Embroker specializes in providing small business insurance and even has a startup policy pre-packaged and ready to go. It includes D&O, employment liability, fiduciary liability, and professional liability coverage with a specialization in tech and cyber-related claims. 


  • Cheap insurance rates due to its online-only business model. 

  • Startup package with a specialization in tech startups. 

  • Great customer service ratings. 


  • As a new company, there isn’t a lot of historical data about the reliability of Embroker. 

Best For: Small tech startups who specialize in providing a product or service to a limited audience

Average Cost: $31 per month

Insuranks Rating: 5/5

Coverwallet Startup Insurance

Coverwallet is owned by the large multinational insurance conglomerate AON, which provides insurance policies in over 120 different countries. Coverwallet itself is a relatively young company founded in New York City to provide simple, affordable insurance policies for small to mid-sized businesses and startups. They offer everything from general liability policies to coverage for professional liability claims, allowing you to build your own policy based on your needs. 


  • Coverwallet specializes in small business and startup insurance. 

  • Partnered with AON, a multinational firm with an excellent reputation. 

  • Build your own policy based on your startup’s unique needs. 

  • Excellent online startup insurance quotes comparison


  • Coverwallet is online-only, which means that getting in touch may take a little bit longer than with a traditional insurer. 

Best For:  Cheapest startup insurance quotes comparison online for all startup business sizes  

Average Cost: $27 per month

Insuranks Rating: 5/5

Thimble Startup Insurance



  • On-Demand, customized policies

  • Competitive rates

  • Fully digital

  • Great customer service 


  • Newcomer

Best For:  On-demand s tartup insurance policies

Average Cost: $30 per month 

Insuranks Rating: 4.3/5

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