Protect Your Tech Startup with Indemnity Insurance

Starting a tech start-up can be an exciting and challenging venture. As a business owner in the technology sector, it’s important to consider all aspects of your start-up, including potential risks and liabilities. One crucial aspect that often gets overlooked is insurance. The right insurance coverage, such as indemnity insurance for tech start-ups, can safeguard your business from unwanted financial losses and legal expenses.

Read more
Get ₹10 Lac Cover starting at ₹873*

Get right expert advice

Hassle free policy

Speedy Claims

Spend Less Save More!! Check Our All-Speciality Rate Chart

Fast-track your search with instant quotes from prominent insurers

Get Customized Professional Indemnity Plans Instantly

Step 1/2

Get Customized Professional Indemnity Plans Instantly

You are -
secure-icon We don't spam
Get Updates on WhatsApp
View Plans

Get Customized Professional Indemnity Plans Instantly

Step 2/2
Fast-track your search with instant quotes from prominent insurers
Expert advice

Buy right

Instant policy

Quick & Hassle free

Dedicated team

Speedy Claims

Spend Less Save More!! Check Our All-Speciality Rate Chart

Common Risks Faced by Technology Startups

While a tech start-up can face several hurdles, here are some of the common risks it faces:

  1. Intellectual Property Disputes

    Intellectual properties, such as patents, trademarks, and copyrights, are some of the USPs of most startups. Given their intangible nature, startups often face disputes regarding ownership and usage.

  2. Contractual Liabilities

    When you are starting, your business will enter a lot of contracts for its smooth functioning. A key component of contract management is managing and minimising contract risk, which negatively affects the operations and outcomes of a contract. Unless well managed, these can lead to contractual liabilities, negatively impacting your business's reputation and financial position.

  3. Data Breaches and Cybersecurity Threats

    With their limited resources and capital, startups often cannot avail themselves of the best cybersecurity services to protect their sensitive data. Unwanted intruders often take advantage of your limitations, and you get entangled in a series of data breaches and unwanted security threats.

How can These Risks Affect a Company's Financial Performance and Reputation?

A startup's reputation is its currency but is vulnerable to various risks. Intellectual property disputes, like disagreements over patents or trademarks, can make the company seem uncertain. Contractual mistakes can make people doubt its reliability.

And if the company suffers from data breaches or cyberattacks due to limited cybersecurity resources, it may seem incompetent or negligent. To thrive, startups must manage these risks carefully to maintain trust with customers, investors, and partners.

Explore Types of Professional Indemnity Insurance

How can Indemnity Insurance Help Companies Combat such issues?

Indemnity insurance is crucial in helping tech companies combat potential financial losses and legal expenses resulting from professional mistakes, omissions, or legal liabilities. Here are some ways in which PI insurance can assist tech startups:

An indemnity insurance policy transfers the potential financial burden to a third party, the insurer. Business owners can also benefit from peace of mind, which may not be as obvious as it might seem.

As a safety net, insurance allows startup founders to concentrate on achieving their company's goals. It lets them operate without worrying about potentially devastating events beyond their control.

Examples Showcasing the Role of Indemnity Insurance for a Tech Startup

Here is an example to showcase the role of indemnity insurance in safeguarding the finances and reputation of a tech startup:

Navigating a Data Breach Crisis

Despite implementing stringent cybersecurity measures, a burgeoning tech startup in Bangalore faces a nightmare scenario: a sophisticated cyber attack breaches their systems, compromising sensitive client data. Initially confident in its defences, the organisation finds itself overwhelmed and helpless because of the fallout.

With mounting pressure from affected clients and the looming threat of regulatory fines, the situation escalates when a significant creditor files a lawsuit against the startup for negligence in safeguarding confidential information.

The startup's decision to invest in indemnity insurance proved invaluable in this dire situation. They soon notified the insurer, and he was quick to take action. The tech startup did not have to spend a penny from their pocket because the insurance provided them with the financial coverage they needed such as defence costs, lawyer's fees.


Insurance is crucial for tech startups to protect themselves from unforeseen risks and liabilities. By understanding the potential risks and opting for the right insurance policies, startups can mitigate financial losses and safeguard their reputation. Indemnity insurance can be your knight in shining armour and save your business from running into financial and reputational risks. If you are having a tough time finding the right policy for you, head over to Policybazaar for Business today and choose from a plethora of policies from the top insurers in the country.

Professional Indemnity Insurance Companies

Now help your friend get Business Insurance

Your referral is greatly appreciated!

Our team will reach out to your friend soon to help with their business insurance requirements.

Professional Indemnity Insurance Articles
In 2024, the medical profession in India remains highly respected and financially rewarding. Doctor salaries vary...Read more
31 Oct 2023 by Policybazaar 4198 Views
Indemnity clauses which is also known as the contract of indemnity is crucial. It is a contract under which one...Read more
25 Oct 2023 by Policybazaar 1453 Views
A doctor performs several risk-associated tasks. He needs to cure different kinds of diseases affecting patients...Read more
27 Apr 2023 by Policybazaar 4108 Views
To become a doctor, you have to devote years to studying and training. However, sometimes despite the best...Read more
10 Mar 2023 by Policybazaar 1407 Views
Professionals such as lawyers, chartered accountants, doctors, engineers, etc. are susceptible to several kinds of...Read more
29 May 2023 by Policybazaar 2549 Views
Insurance policies are integral to risk management, providing...Read more
06 Jun 2024 by Policybazaar 179 Views
Artificial Intelligence has revolutionised various industries by...Read more
30 May 2024 by Policybazaar 150 Views
Professional Indemnity Insurance (PII) is a vital safeguard for...Read more
30 May 2024 by Policybazaar 126 Views
Telemedicine has revolutionised the way healthcare is accessed...Read more
30 May 2024 by Policybazaar 179 Views
Medico-legal cases are a significant aspect of healthcare...Read more
30 May 2024 by Policybazaar 179 Views
Policybazaar for Business - Professional Indemnity Insurance - Customer Reviews
View all
Based on 21 reviews
out of 5
Based on 21 reviews
0 users
15 users
6 users
0 users
0 users
4.5 April 24, 2023
Helpful Purchase
Profesiona Indemnity Insurance has been a game-changer for my consultancy business. It has given me the confidence to take on new projects and expand my services, knowing that I have robust coverage in place.PolicyBazaar has been fantastic in answering my questions and tailoring the policy to my specific needs.Thanks PolicyBazaar.
3.5 April 12, 2023
Amazing Deals
I recently purchased Professional Indeminty Insurance from PolicyBazaar and the claims process is smooth, and has always been prompt in resolving any issues or concerns I've had. I appreciate the reliability and professionalism they exhibit.
3.8 March 31, 2023
Online Purchasing
Profesional Indemnity Insurance has been a lifesaver for my business. It offers comprehensive protection against any claims that may arise from errors or negligence on my part. The claims process was straightforward, and they handled everything efficiently. I highly value the peace of mind this insurance provides and would recommend it to any professional.
4.3 March 13, 2023
Impressive Features
I had an excellent experience while buying Personal Indemnity Insurance. It was quick and easy to get a quote online and the premiums were quite affordable. The policy covers all the essential aspects, and the customer service team was responsive and supportive. I feel much more confident in my work knowing that I have this coverage
3.8 March 01, 2023
Helped To Secure Confidential Data Of Company
As a Owner I had a high risk of loss of confidential data. Then my colleague suggested me go for PI Insurance at PolicyBazaar. So I visited their website and contacted the team. They answered all my queries, and when I got satisfied with the plan, I made a purchase. Thanks, PolicyBazaar.
4.3 February 17, 2023
Covers Legal Expenses
There was a party that made a claim against us for professional negligence by one of our employees. Thanks to PolicyBazaar which helped me protect our financial position and helped us during the claim process that covered our Legal expenses and Settlement cost. Highly Recommend this.
4.3 February 05, 2023
Covers The Risks
I bought Professional Indemnity Insurance from PolicyBazaar, as I was looking for insurance that could mitigate my risk associated with several professional services. Thanks to PolicyBazaar. It was worth buying. Highly Recommend it.
4.3 January 24, 2023
Helps Me To Focus On My Work
I was always concerned about my organization in order to safeguard against potential liabilities and unforeseen circumstances that could arise from professional negligence. So I bought PI Insurance at Policybazaar and found it good as it helped me to focus on my work without worrying about financial repercussions. So thanks to PolicyBazaar.
3.8 January 08, 2023
Amazing Deals
I bought Professional Indemnity Insurance from the PolicyBazaar website and found it suitable for my business. I run a small company. I got terrific Deals at PolicyBazaar. It was an excellent Purchase. Thankyou PolicyBazaar.
4.3 December 14, 2022
Doctor Vishal
Covers Professional Negligence
As a Doctor, I was searching for Professional Indemnity Insurance that could provide me coverage against claims for Negligence in my services. Then I visit PolicyBazaar Website. There I came across several benefits. So I made the purchase there. Thanks, PolicyBazaar.