Working with venture-backed companies is one of our core areas of expertise. Over the years, CAL Insurance has assisted hundreds of companies to find the right insurance plan as they transition through the various stages of Venture Capital funding. From a newly backed startup receiving its initial Angel investment to a company moving into Series C funding and beyond, CAL is prepared with the experience and options to create a sound insurance program for your business.
In addition, our employee benefits team can be brought in to consult on leveraging human resource technologies while continuing to meet the important objectives you have for your employees and their families.
Workers’ compensation coverage is mandatory, and proper management of the program is essential. As coverage differs from state to state, based on varying state labor laws, it is important to keep your insurance advisor aware of new hires, especially when hiring in various states. Many technology companies don’t adhere to traditional employee models as many have remote employees or independent contractors. While this flexibility in their workforce allows them to access a broader talent pool, it also opens the company up to exposures that could result in a setback with fines being levied by the state or not having coverage for an employee altogether.
A properly established D&O program is imperative for funded companies. In addition, investors may require specific coverage limits be set before funding finalizes. Also, prospective board members may require that a D&O be in place before agreeing to take a seat. Each D&O policy should have three sides of protection: One side for the directors and officers not indemnified by the entity, one for the directors and officers indemnified by the entity, and one for the entity itself.
Employment Practice Liability can stand alone or be added to a D&O program. This coverage protects the entity from allegations such as wrongful termination, harassment (including sexual harassment) and discrimination. The limit should provide coverage for defense costs as well as any settlement or judgment when allowable by the policy.
Like EPLI, Fiduciary Liability can stand alone or be added to the D&O program. This protects the fiduciary(ies) of the organization from allegations of mishandling the company’s retirement plan(s). The policy covers the legal expenses of defending against the claim as well as the financial losses the plan may have incurred due to errors, omissions or breach of fiduciary duty.
General Liability is the starting point for allegations of bodily injury and property damage suffered by a third party. This line of coverage will almost always be requested for lease(s) and contracts.
For companies operating in the technology or professional services industries, E&O coverage is an important part of the insurance portfolio. Coverage language varies by industry, so please consult your CAL advisor to establish the right language for “professional services.”
Cyber insurance should have coverage for both first and third party exposures. A robust program will also include cyber crime coverage. Limited cyber coverage can be embedded within a property, general or professional liability policy, which may or may not be the right solution. Your CAL advisor will know more on which platform is most appropriate.
Commercial property insurance protects your business’s physical assets from fire, explosions, ruptured pipes, storms, theft and vandalism. Earthquakes and floods typically aren’t covered by commercial property insurance and can be sourced through different insurance markets. The policy may also include coverage for business income/interruption as well as employee dishonesty.
Your operations may include the need for company vehicles. Liability does not stop at an organization’s owned vehicles, but is also a concern when employees are driving their own vehicles on the organization’s behalf. Coverage to protect the company owned vehicles in case of theft or damage is referred to as “comprehensive” and “collision” coverage, and both should be added in most cases.
The excess liability/umbrella adds higher limits of protection and is provided in million dollar units or layers. Often, contracts will require some amount of excess liability/umbrella insurance. The coverage typically exceeds the general, auto and employer liability and is a part of a workers’ compensation policy.
Operating internationally and/or when employees travel abroad, this coverage buttons up exposure outside the United States.
