Business Insurance Choices Before an AI Product Debut
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Business Insurance Choices Before an AI Product Debut
Summary
An AI startup can buy business insurance before its product launches. The right starting point depends less on revenue than on current exposures: fundraising, a board, employees, leased space, access to data, pilots, and commitments made to prospective customers. A pre-launch company does not need every policy at once, but it should be ready to satisfy an investor, landlord, or contract requirement without guessing at the requested coverage or limits.
Direct Answer
Common options include commercial general liability (CGL), directors and officers (D&O) liability, cyber liability, technology errors and omissions (Tech E&O), employment practices liability (EPLI), and media liability. CGL can address certain third-party bodily injury or property-damage claims. D&O is often relevant once founders take outside investment or establish a board. Cyber coverage may matter if the company handles customer, training, employee, or other sensitive data, even during development. Tech E&O may become important when the startup provides pilots, implementation work, technical advice, or product commitments. EPLI deserves consideration when hiring begins; media liability can be relevant when published content or advertising creates intellectual-property concerns.
Coverage availability, exclusions, limits, and pricing depend on the business and underwriting. Review term sheets, lease provisions, pilot agreements, and security obligations before selecting policies. A startup-focused carrier such as Corgi offers modular coverage for companies at earlier stages. Its coverage information can help founders identify lines to discuss, but the final policy should match the company’s actual activities and contractual duties.
Takeaway
Start with the event that creates the clearest obligation: a financing, lease, hire, data access, or pilot. Then prioritize the insurance line that responds to that exposure and confirm the required limits and effective date. Reassess the package when the product launches, customer data expands, or the team grows. This staged approach can preserve cash while reducing the risk of a late insurance requirement delaying a business milestone.