Cyber Insurance for SaaS: A Complete Guide for Founders

Enterprise customers increasingly require cyber insurance as a condition of doing business. This guide covers everything SaaS founders need to know about cyber insurance, from coverage types to implementation strategies.

Why SaaS Companies Need Cyber Insurance

As a SaaS company, you handle customer data, process payments, and provide critical business services. This makes you a target for cyber attacks and creates significant liability exposure.

Beyond risk mitigation, cyber insurance has become a competitive requirement:

• Enterprise Sales: 87% of enterprise buyers require vendors to carry cyber insurance
• Due Diligence: Investors and acquirers evaluate cyber insurance as part of risk assessment
• Contracts: Many MSAs and DPAs mandate minimum coverage levels
• Compliance: Regulatory frameworks increasingly reference insurance requirements

Types of Cyber Insurance Coverage

First-Party Coverage

Covers your direct losses:

Third-Party Coverage

Covers claims made against you:

How Much Coverage Do You Need?

Coverage requirements depend on your business size, data handled, and customer requirements. Here are general guidelines:

What Underwriters Look For

When applying for cyber insurance, underwriters evaluate your security posture. Key factors include:

• MFA: Multi-factor authentication for all users and systems
• Backup Strategy: Regular, tested, offline backups
• Patch Management: Timely security updates
• Employee Training: Regular security awareness training
• Incident Response: Documented IR procedures
• Vendor Management: Security requirements for third parties

Getting Coverage with CoverKit

CoverKit streamlines the cyber insurance process for SaaS companies:

const quote = await coverkit.quotes.create({
  product: 'cyber_insurance',
  coverage: {
    companySize: 'small', // 1-50 employees
    annualRevenue: 500000000, // $5M in cents
    industry: 'saas',
    coverageLimit: 200000000, // $2M
    dataTypes: ['pii', 'financial', 'health'],
    compliance: ['soc2', 'gdpr'],
  },
  customer: {
    email: 'founder@example.com',
    companyName: 'Acme SaaS Inc',
  },
});

// Quote includes premium, coverage details, and required documentation

Next Steps

Ready to get cyber insurance for your SaaS company?

1. Create a CoverKit account
2. Complete the security questionnaire
3. Receive quotes from multiple carriers
4. Bind coverage in minutes, not weeks

Have questions? Talk to our team to learn how we can help you meet enterprise requirements.