SaaS Insurance

What is SaaS insurance and how can it help protect your software business?

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.

 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.

 Beazley saas insurance brand
 CFC saas insurance brand
 Chubb saas insurance brand
 Hiscox saas insurance brand

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.

 What is SaaS insurance explained?

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

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

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

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

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.

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 covers, 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.

 

 How much does SaaS insurance cost?

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

Frequently asked questions

What is Personal Identifiable Information?

Personal identifiable information (PII) is data information relating to a natural person who can be identified directly from the information in question or identified from that information in combination with other information. The Data Protection Act 2018 is the UK’s implementation of the General Data Protection Regulation (GDPR). Everyone responsible for using personal data has to follow strict rules called ‘data protection principles’.

What is Sensitive Information defined by the ICO?

Sensitive information is described by the ICO (Information Commissioners Office) as Special Category Data, this is likely to be more sensitive, and as such should be given extra protection. This type of information could be the racial or ethnic origin, political opinions, or religious beliefs, financial data may be considered sensitive.

Do we need SaaS business insurance?

It's prudent to SaaS providers to purchase business insurance covers at affordable premiums to mitigate the risk of a serious financial consequence that could threaten the future of the business.

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