
Ask HN: Do you have insurance for your SaaS? - jrod2121
I just received a contract from a client, and they are requesting we have insurance for:<p>(a) Commercial General Liability policy; Excess&#x2F;Umbrella Liability policy to include coverage for Contractual Liability, Personal&#x2F;Advertising Injury and Products and Completed Operations with limits of $3,000,000 per occurrence and $3,000,000 in the aggregate.<p>(b) Professional Liability Insurance insuring but not limited to Intellectual Property infringements, Contractual Liability with a limit of $1,000,000 per occurrence and in the aggregate.<p>(c) Cyber Insurance to include but not limited to Network Security and Data Privacy with a limit of $1,000,000 per occurrence and in the aggregate.<p>(d) Worker’s Compensation insurance with statutory limits to include Employer’s Liability with a limit of not less than $1,000,000.<p>We run an online SaaS business, just a small team of 2 people -- we have many clients and this is the first time we&#x27;ve ever received this. Is all of this necessary or is it common for lawyers to include this in contracts? Does anyone have this insurance?
======
throwawayinsnce
Call Geico. They'll refer you to HISCOX (transfer your call) and their prices
are reasonable. You could just call HISCOX directly but I suspect they give
Geico customers a lower quote (you could experiment). I have general liability
and identity theft insurance at about $30/month. They quoted me for
professional liability and it wasn't much more but I opted out because it
covers you giving negligent advice and I don't give clients advice (just
code). If you have no employees (legal definition of employee), I question
whether you need worker's compensation.

IANAL or an insurance agent and this is not advice, just my personal
experience.

------
jesusmichael
1\. The GL is a little high... If you're a sole proprietor and you own a home
you can get the GL rider for like $200-300 a year.

2\. PL isn't expensive typically they rate it by your last 12 months of
revenue. We do $10M+ last year and our PL premium is $1900 a year.

3\. Never heard of this... Call you're ins company.

4\. They might be able to waive the WC if you are both owners of the company
and you don't have any employees.

~~~
jrod2121
Where would we go to get these types of insurance? We are a LLC (2 members, no
employees).

~~~
jesusmichael
Well... most large ins cos have these lines. Allstate, Farmers, State Farm. If
you have a house, call your agent they will get you a deal that's a small
business rider on your homeowners ins. If you don't have a house... call the
agent you got your car insurance from.

Or google "Small business general liability insurance <your city>" There are
probably a boatload of brokers.

If you're in SoCal or PHX... I'll give you a couple of names of good biz
brokers

if you are employees of your own company and you pay yourself a paycheck (not
a shareholder distribution)... you may want to consider a PEO so you don't
have to get Worker's comp... that can be a pain in the ass...

~~~
jrod2121
What about something like hiscox?

~~~
jesusmichael
yea... whatever... I'm thinking you might get a discount if go with your
agent.

------
rpedela
You need A for sure. Most landlords won't allow you to rent an office without
it. The rest I think you need to decide if you want their business and if the
answer is yes maybe you should have a more expensive enterprise plan like
loumf suggested.

------
loumf
Sounds like they need your Enterprise plan

~~~
logn
Businesses should have this insurance anyway. If I were them, I'd acquire the
insurance and act like we had it all along.

