ASK HN: SAAS liability insurance?

Posted by kull on Saturday July 14, 2018 @09:24AM
from the self-post dept.

We are a US-based, somehow successful, but still a small SAAS business, with many customers. We have a solid product and good T&C, but we were almost sued recently. As a founder, this was one of the most stressful experiences of my life. As much as we go crazy on keeping high quality, I know this is just a matter of time, a customer will claim our support or our product did something that cost them millions.

Do you have any liability insurance for your SAAS? When I search for liability insurance online, most results look super scammy. Any company you can recommend?

( 5 comments | 13 points | on HN )

Re:ASK HN: SAAS liability insurance? by codegeek on Saturday July 14, 2018 @01:29PM (#17531281)

There is no insurance for "a customer claims that your product cost them millions". You will come across some clients who claim that regardless of what happened. However, you could buy something called "Errors and Omissions" (E&O) which is an insurance for disasters in case something happens to customer data etc due to your fault. I have used a broker called techinsurance which seem to be decent:

https://techinsurance.com

also, hire a lawyer to get solid T&C in place and make sure that customers are aware of any changes in T&C. Keep a good relationship with the lawyer and make sure that any potential legal challenges are discussed with the lawyer. It will cost you a bit but provides peace of mind.

If a client is threatening to sue, get the lawyer involved.

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Re:ASK HN: SAAS liability insurance? by predius on Saturday July 14, 2018 @02:28PM (#17531596)

We've used https://foundershield.com/ for a few years now. They have managed to help us from a small E&O and supplier liability insurance, as well as cyber liability– to a much larger international insurance spanning multiple organizations.

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Re:ASK HN: SAAS liability insurance? by kull on Monday July 16, 2018 @04:46PM (#17544935)

AN UPDATE: after an intensive research, it looks like foundershield is a company many people recommend. I am getting a quote from them and it seems pretty reasonable. I wish I could find somebody who filed a claim with them an got money.

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Re:ASK HN: SAAS liability insurance? by mabynogy on Saturday July 14, 2018 @07:06PM (#17532867)

I'd stop doing business with a man who threaten me (if he is the boss. If he is an employee, I'd try to see that with the boss).

You can't protect you for that of it will be very expensive. You can proactively search for a good lawyer.

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Re:ASK HN: SAAS liability insurance? by kull on Saturday July 14, 2018 @11:21PM (#17533638)

Thank you for the suggestions. I will contact those companies for a quote.

I am wondering, are there any stories companies filling a claim and getting money? I actually have a hard time finding any stories of SAAS companies being sued.

[ Parent | on HN ]