When launching a startup, priority goes to the product, to the cash flow, to the first customers. Insurance, on the other hand, often comes much later. However, not anticipating your insurance needs can slow down or even compromise commercial negotiations. Here's why it's essential to think about it from the start of your business.
I often see software publishers, especially in SaaS, neglecting their insurance in the first few months. It is not a deliberate choice. It's just that you don't think about that when you build your V1, or when you're looking for your first customers.
And then one day, everything accelerates. A large account shows its interest to you. The contract is ready. All that's left to do is sign. And then you come across a clause like:
“The service provider must provide an insurance certificate covering his professional civil liability and cyber risks.”
Except you didn't plan anything. The result: you waste time looking for a broker or understanding what guarantees to take, when the negotiation was almost finalized.
Some insurances are secondary. Not these ones. Professional civil liability and cyber insurance have become standards in B2B contracts, especially IT contracts.
Professional civil liability covers your business in the event of professional misconduct: configuration error, bug, late delivery, unavailability of the service... In the event of harm caused to a customer, it takes over.
It therefore protects your business, but also your customer, who will be reassured to know that in the event of a problem, the financial consequences will not only be based on a startup with limited capital.
Some specific guarantees are particularly useful in digital professions, such as:
Cyber insurance is not just for large groups. It becomes essential when you manage data, host a service or connect users to an interface.
The possible incidents are numerous:
Cyber insurance can cover:
These incidents can paralyze your business, generate significant costs and damage your image. It is better to be prepared for it.
Subscribing to these insurances as soon as your first customers brings you several concrete advantages:
These are reasonable expense items, but key elements in the commercial credibility of a startup.
CPR and cyber insurance have become standards. Planning them in advance saves you from bottlenecks and reinforces the solidity of your first contracts.
Insurance is not an unnecessary burden to push back on. It is a lever for legal and commercial security. As a lawyer, I advise you to include it very early in your checklist. If you are preparing your first B2B contracts or terms and conditions, I can help you adapt them and anticipate these requirements from the start.
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I have been supporting software and SaaS companies for more than 10 years, to structure their business, protect their intellectual property and improve their contracts.
