Hiscox vs Next Insurance vs Simply Business: Best SaaS & Software Company Insurance
A single software defect, data breach, or service outage can trigger a lawsuit that threatens your SaaS platform or mobile app. But choosing the wrong insurance policy, or overpaying, drains capital needed for development and growth. This guide cuts through the noise, showing exactly which insurer fits your specific needs as a software publisher or tech startup.
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The quick answer
Next Insurance offers fast, basic General Liability (GL) for very small, low-risk software freelancers, though it doesn't cover core software risks like data breaches or bugs. Hiscox is the standout for SaaS companies and software publishers, offering robust Errors & Omissions (E&O) and Cyber Liability coverage, which are critical for tech businesses. Simply Business acts as a broker marketplace, ideal for comparing multiple specialized tech insurance quotes, especially if you need a complex package including D&O or IP insurance.
Side-by-side breakdown
Next Insurance: Online-only, offers instant quotes for General Liability (GL). While quick, GL typically starts higher for tech ($30-$50/month) and doesn't cover your main risks like software defects or data breaches. Best for: solo software freelancers with no client data handling, or very small dev shops seeking basic GL for a physical office space or trade show booth. Not ideal for core SaaS risks.
Hiscox: Specializes in professional services and tech. Their strength is in bundling critical tech coverage like Errors & Omissions (E&O) and Cyber Liability. E&O protects against claims from software bugs, missed deadlines, or service downtime. Cyber covers data breaches, ransomware, and regulatory fines (e.g., CCPA, GDPR). Expect E&O/Cyber packages to start around $60-$100/month for early-stage SaaS, depending on revenue and client data volume. Best for: B2B/B2C SaaS platforms, mobile application publishers, enterprise software startups that need comprehensive protection against digital risks.
Simply Business: A broker marketplace that connects you with multiple insurance carriers specializing in tech, including those offering niche coverages like Directors & Officers (D&O) or Intellectual Property (IP) infringement insurance. Excellent for comparing diverse options for E&O, Cyber, and General Liability, or for securing complex packages. Best for: SaaS companies with funding, multiple employees, handling sensitive customer data, or those seeking bespoke coverage for specific contracts or global operations.
When to choose Next Insurance
Choose Next Insurance if you are a sole developer or a micro-startup with minimal client interaction and primarily need basic General Liability to satisfy a landlord or a very low-risk contract. For example, if you mostly build internal tools with no external customers or handle no sensitive data. Their quick online process is convenient, but remember, Next's focus isn't on the core professional liability or cyber risks inherent in publishing software or managing a SaaS platform. It's a quick fix for *physical* risks, not *digital* ones.
When to choose Hiscox
Choose Hiscox when your software development, platform, or mobile app involves critical functionality, handles user data, or could cause financial harm to a client due to a flaw. This is especially true for SaaS. A General Liability policy won't protect you if your API goes down, a software bug causes data loss, or a security vulnerability leads to a breach. Hiscox excels here by bundling Errors & Omissions (E&O) — which covers claims from software defects, missed Service Level Agreements (SLAs), or professional errors — with Cyber Liability, which handles data breaches, ransomware, and network security failures. This bundled approach is crucial for any serious software publisher or SaaS business.
When to use Simply Business
Use Simply Business when your SaaS operation or software publishing venture has specialized or complex insurance needs. This includes growing startups with funding rounds, businesses handling significant volumes of sensitive customer data, or those needing more than just E&O and Cyber. If you require Directors & Officers (D&O) liability for your board, Intellectual Property (IP) infringement coverage, or need to navigate international data privacy regulations (like GDPR), a marketplace like Simply Business can connect you with carriers offering these niche tech policies. It's also ideal if you want to compare multiple quotes to ensure you're getting the best rates and comprehensive coverage for your evolving tech business.
The verdict
For most SaaS companies and software publishers, **start with Hiscox** for robust Errors & Omissions and Cyber Liability. These are your foundational protections against software defects, service outages, and data breaches. If you're a solo developer with minimal risk exposure, **Next Insurance** might offer quick, basic General Liability, but it's often insufficient. For advanced needs, specific contract requirements, or securing specialized coverages like D&O or IP, **run Simply Business first** to compare a broader market of tech-focused carriers. Ignoring proper insurance is the fastest way for a single bug or data incident to wipe out your entire software business.
How to get started
1. **Prioritize core tech risks**: For SaaS/Software, your primary needs are usually Errors & Omissions (E&O) and Cyber Liability. General Liability is secondary. 2. **Start with a specialized quote**: Get an initial bundled quote for E&O and Cyber from a tech-focused insurer like Hiscox. 3. **Compare and expand**: If the quote is high, or you need D&O, IP, or have complex compliance needs (e.g., SOC 2, HIPAA), use Simply Business to explore multiple carriers and policy structures. 4. **Secure before launch**: Purchase your essential tech insurance *before* deploying your platform, launching your app, or onboarding your first paying user. 5. **Document and share**: Download your certificate of insurance and keep it readily accessible. Many B2B clients and investors will require proof of coverage.
RECOMMENDED TOOLS
Next Insurance
Instant online quotes — coverage in minutes
Hiscox
Best for professional services and E&O coverage
Simply Business
Compare multiple carriers side by side
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FREQUENTLY ASKED QUESTIONS
Do I need business insurance if I am an LLC?
Yes. An LLC protects your personal assets from business debts, but it does not protect you from liability claims arising from your work. If a client sues you, the LLC limits personal exposure but the business itself still needs insurance to cover legal costs and settlements.
What is the difference between general liability and professional liability?
General liability covers bodily injury and property damage — someone trips and falls at your event, for example. Professional liability (E&O) covers claims that your work, advice, or service caused financial harm to a client. Most service businesses need both.
How much does small business insurance cost?
General liability for a low-risk service business typically starts at $25-50/month. Professional liability adds $30-80/month depending on your profession and revenue. Bundled policies (BOP) can be more cost-effective for businesses with physical locations.
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