In the uncertain landscape that has emerged due to the pandemic, navigating the complexities of running a tech startup has become even more challenging. From focusing on Net Revenue Retention to securing investments and understanding legal intricacies, the hurdles are many. Unforeseen events like the SVB crisis only add another layer of complexity. However, the good news is that the right business insurance can offer a safety net, allowing you to concentrate on building a thriving business. Why Opt for Business Insurance Tailored for Tech? Issues like data breaches, legal disputes, and service or product failures can severely impact a nascent tech company. This is where specialized business insurance steps in, offering financial safeguards against unexpected setbacks. With the right insurance coverage, you can direct your energy towards scaling your business with confidence. 3 Essential Business Insurance Types for Tech Startups While each business has its own unique needs and challenges, there are three types of insurance that are universally beneficial for tech startups. Errors and Omissions Insurance (E&O) E&O Insurance, or Errors and Omissions Insurance, is a type of professional liability insurance that protects companies, their workers, and other professionals against claims of inadequate work or negligent actions. This insurance coverage is particularly important for businesses that provide services or advice to clients. If a client believes that a service or advice has led to a financial loss or other types of damages, they may file a claim against the company. E&O Insurance helps to cover the legal fees, settlements, and other costs associated with defending against such a claim. For Example: If you're in the tech industry, offering products and services to clients, what happens if they don't perform as expected? According to a study by Marsh India, E&O claims in the country increased by 20% in 2020 compared to the prior year. Having E&O insurance can protect your client-facing business and enable you to operate more confidently.