The short answer
General liability, Tech E&O/cyber and D&O are core lines to discuss as contracts and investors set requirements. Our illustrative three-line budgets total $4,250–$9,600 annually for a pre-revenue example and $7,500–$16,200 for a seed example with about $1M revenue. These are not quotes; taxes, fees, optional lines and workers’ comp are additional. Carrier underwriting determines available terms and timing.
Use this guide to prepare questions, not to establish coverage. Any unsourced costs, limits or timing ranges are illustrative planning examples, not quotes, verified market averages or carrier commitments.
What’s in the seed-stage bundle, and why
| Coverage | Why seed companies buy it | Typical limit | Buy it when |
|---|---|---|---|
| General liability | Required by most customer contracts and leases | $1M/$2M | First contract or office |
| Tech E&O and cyber | Customers require it; covers product failure and breaches | $1M | First customer with data or uptime terms |
| D&O | Protects founders and directors; investors expect it | $1M | First board seat or priced round |
| Hired and non-owned auto | Covers employees driving rentals or own cars for work | Matches GL | Added to GL at little cost |
General liability usually comes first because a contract asks for it. See how to meet a $1M/$2M requirement with a same-day certificate.
Other coverage to consider early
- Employment practices: discuss it when you begin hiring; exposure does not start at a universal headcount threshold.
- Workers’ comp: required in most states from the first W-2 employee. Founder-only companies can often exclude officers; check your state.
- Higher Tech E&O and cyber limits: buy them when a contract requires it. See how to reach a $5M Tech E&O and cyber limit.
- Crime and fiduciary: add them when cash balances grow or you start a 401(k).
What the seed bundle costs
The illustrative three-line examples total $4,250 to $9,600 annually for a pre-revenue company and $7,500 to $16,200 for a company with about $1M in revenue. These add only general liability, combined Tech E&O/cyber and D&O—not every policy your company may need. They are not quotes or measured placement averages. Actual pricing requires underwriting; taxes, fees and other lines may be additional. The assumptions and arithmetic are in startup insurance cost by funding stage.
Who can put a seed bundle in place
Online platforms sell seed packages from one carrier, which is fast when your answers fit its appetite. StartupInsurance.ai quotes each coverage with the market that fits it, and tells you plainly when a single-carrier package is the better buy. When you raise, see what investors require at each stage and the Series A insurance bundle.
Get a contract check
Send us your first contract or term sheet. We provide an initial written review within one business day after receiving the necessary information, with questions and next steps. Carrier quotes, coverage decisions and policy changes may take longer. Get a free contract check.
A few more answers
Frequently asked questions
What insurance does a seed-stage startup need first?
Whatever your first contract or investor requires. With no requirement yet, most B2B startups start with general liability and Tech E&O and cyber, because customers ask for those first.
Do I need workers' comp if only the founders are on payroll?
It depends on your state. Many states let corporate officers exclude themselves, and some require coverage once you have any employee. Check your state's rules before your first hire.
Does a seed startup need cyber insurance if it holds little customer data?
Usually, if customers require it, and most enterprise contracts do. Little data keeps the price low, but a breach of your own systems or a customer's credentials can still cost six figures.
Can a seed startup buy all its insurance from one carrier?
Yes, through a package policy. It's simpler and often cheaper. The trade-off is that one carrier's terms and limits apply to everything, which may not match every contract.
How often should a seed startup review its insurance?
At each funding round, each new large contract, your first hires and every renewal. Each one can change what you need or what you'll pay.
General information, not a coverage determination or legal advice. Unless a specific source is identified, prices and timing ranges are illustrative planning examples—not measured market averages, quotes or guarantees. Policy wording, carrier, state and your company’s operations determine what applies.