The rise of SaaS (Software as a Service) has seen many businesses shift from on-site servers or data centres to cloud-based subscription services. Companies providing these services are exposed to breach of contract allegations and can process large amounts of customer data, therefore at risk from cyber-attacks and data breaches.

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SaaS Insurance from the Willis Towers Watson Network

Why SaaS insurance is important and who are the leading providers?

There can be significant reliance on software in the modern world and companies should seek to protect themselves from breach of contract claims by purchasing professional indemnity insurance. Failure to meet service delivery standards can mean clients seeking compensation claims. It is also common practice that your clients will wan the assurance that you purchase appropriate cover to use your SaaS.

What is SaaS insurance?

Insurance for SaaS businesses covers a wide range of risks, the more traditional covers that protect the day to day running of the business, such as the employers liability, public libaility, and property insurance, are commonly purchased under an office insurance policy.

Directors and officers insurance is commonly purchased to protect the personal assets of the directors. Wheras, professional Indemnity insurance which protects the company against allegations of negligence or breach of contract.

Cyber insurance on the other hand can offer protection and triage services from 3rd party specialists to protect against the damages arising from cyber attacks and an interruption to the business.

Why do SaaS companies need to consider adequate insurance protection?

SaaS companies buy insurance to protect themselves from the financial risks involved in the event of a claim, protecting them against the operational risks of running a business and ensuring that they are secure and compliant. We can provide insurance options designed to the specific needs of small and large SaaS businesses.

Growing pains

SaaS insurance allows companies to innovate and grow, mistakes can sometimes happen as they scale up to meet the increasing demands of customers.

Investor requests

Many investors request that directors and officers insurance is purchased to ensure their is policy to claim against, and to protect board members.

Contractual requirements

Your clients may require you to hold certain amounts of insurance to give them assurance you have the resource available to claim compensation.

Does your software business need insurance for a SaaS platform? Speak to one pf our expert brokers about your requirements

Professional indemnity insurance can start from £322 per annum for SaaS providers

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Let's take a closer look at the most commonly purchased SaaS insurance covers

Companies providing SaaS platforms look to mitigate the potential costs of a wide variety of risks that face the business with the correct insurance. As a Willis Towers Watson Broker, we can access a wide range of insurers to find the best solution to protect your business.

Professional indemnity

Otherwise known as PI insurance, or Tech E&O insurance in the USA and Canada. Covers compensation claims for breach of a professional duty to your clients. Which is very important with +75% of technology company claims relate to breach of contract and delay.

D&O insurance

Directors and officers insurance can help protect the individuals that have positions of responsibility. Claims arising from shareholders are increasingly common and the cover is commonly requested by investors which fund the business.

Cyber insurance

Cyber cover can be purchased with professional indemnity or on a standalone basis. The coverage can protect against third-party liabilities only, or can extend to also include first-party expenses and incident response services.

Business interruption

Downtime in operations can result in a significant loss of income and expense. Business interruption insurance can can protect not only product and service revenue streams, additional increased costs of working but also research and development expenditure.

Office insurance

A package policy designed to provide a employers liability, public and product liability. In addition to a range of property covers for computers and equipment, both at the office and away from the office.

How much does SaaS insurance cost?

The rather unsatisfactory answer is it depends. Your turnover will be the largest driving factor that impacts your insurance premium, startup businesses should provide conservative protections when applying for cover.

There are several factors used to calculate the cost of SaaS insurance including the number of employees, nature of the services, the volume of data held and if this data is special category data, any previous claims, and whether you contact under US law.

It can be cost-effective to combine some of your technology company insurances, but that is not always the case in securing value for money when purchasing SaaS insurance protection. Talk to one of our account executives to discuss your requirements.

Compare SaaS insurance protection to ensure you have the resource to protect the business and it's directors

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