Software companies in Montgomery County and the DC metro tend to buy insurance at three moments: when an enterprise customer sends over a master services agreement with an insurance exhibit, when a lead investor adds D&O to the closing checklist, and when the first employee is hired. Each has a deadline attached, and the founder usually finds out a week before it matters. That is the normal path for SaaS and IT services companies in Rockville, Bethesda and Silver Spring, for govtech and cybersecurity firms serving federal customers along I-270, and for remote-first teams whose only physical footprint is a coworking desk.
Terrapin has worked with Maryland technology companies since 2011, from two-founder LLCs to venture-backed companies with staff in several states. We know which carriers move quickly for a seed-stage company and which ones a Fortune 500 procurement team will accept without a fight. If you have an MSA or term sheet in hand, start with the business quote form or call 240-243-0042. For the broader landscape, see Maryland commercial insurance.
Get a Maryland tech startup insurance quote — usually same day. Call 240-243-0042 or request a business insurance quote online.
Tech E&O and cyber insurance: usually one combined policy
For a software or IT services company, the central policy is technology errors and omissions. It responds when a customer says your product or service failed and cost them money: an outage that took down their operations, a bug that corrupted their data, an integration that never worked as promised. General liability does not cover any of that.
Most carriers now combine tech E&O with cyber liability on one form, because for a SaaS company the two are hard to separate: a breach of your platform is both a security incident and a service failure. The combined policy covers your own breach response costs, liability to customers whose data was exposed, network business interruption, cyber extortion and, in better forms, media liability for content claims. Enterprise customers want to see both E&O and cyber on your certificate, and a combined policy satisfies that as long as limits are adequate. Like all professional liability, it is claims-made, so keep it continuous.
General liability or a BOP for the office, coworking space or home base
A software company’s general liability exposure is small, but you will still be asked for it. Coworking operators in Bethesda and Silver Spring require GL in the membership agreement, landlords require it for a leased suite, and nearly every customer MSA lists it alongside E&O. General liability covers bodily injury and property damage to third parties: a visitor hurt in your office, damage to a customer’s equipment during an on-site install.
If you lease your own space and own meaningful equipment, a business owners policy bundles GL with property coverage for laptops, monitors, servers and furniture, plus business income if a covered loss shuts the office. Erie and MGT both write BOPs that fit a Montgomery County tech office well. Remote-first teams usually need only GL, and the laptops scattered across employees’ homes can be scheduled on an inland marine or property floater if their total value justifies it.
D&O insurance when you raise a round
Directors and officers insurance protects the people on your board and in your C-suite from claims alleging mismanagement, breach of fiduciary duty, misrepresentation to investors or regulatory investigations, and it reimburses the company for indemnifying them. Founders rarely think about it until a term sheet arrives, because institutional investors who take a board seat require it before closing. They are protecting their own partners, and they know what limits they expect for a given round size.
Private-company D&O is usually sold as a management liability package that can include employment practices and fiduciary liability under one policy. Chubb is a leading market for venture-backed technology companies and is generally recognized by investors’ counsel; Travelers writes it for established companies as well. Pricing is driven by funding stage, revenue, headcount, shareholder count and litigation history. We quote it in time for the closing checklist, not after.
Workers comp, EPLI and hired/non-owned auto: the coverages that come with hiring
- Workers compensation. Maryland requires workers comp for essentially all employers with one or more employees, with very narrow exceptions. Software companies are a low-hazard class, so premiums are driven mainly by payroll. Pie and ERGO Next quote small tech firms quickly; Chesapeake Employers will write a brand-new company with no payroll history. See Maryland workers comp.
- Remote employees in other states. Workers comp follows where your people work, not where the company is headquartered. If you hire an engineer in Virginia, DC, Texas or anywhere else, the policy needs to be written to cover that state. Tell us where everyone sits so the policy is set up correctly from the start.
- Employment practices liability. Wrongful termination, discrimination and harassment claims are among the most common suits a growing company faces, and startups that hire fast and restructure often are exposed. EPLI is often bundled with D&O.
- Hired and non-owned auto. Staff driving personal cars or rentals to customer sites on company business create liability for the company. This endorsement on the GL or BOP covers it without a commercial auto policy.
What enterprise customers’ MSAs ask for and how to respond
Selling to a large company or a government prime means an insurance exhibit. The requirements are rarely negotiable in principle, but the specifics often are. Here is what to look for.
- Tech E&O and cyber limits. Enterprise schedules frequently ask for limits well above what a seed-stage company carries. Before agreeing, ask whether the limit can be tied to contract value; if not, we price the increase before you sign.
- Additional insured and waiver of subrogation. Routine on GL and workers comp. Customers generally cannot be added as additional insureds on E&O or cyber, and a knowledgeable procurement team will accept that.
- Notice of cancellation. Clauses often demand advance notice to the customer; carriers honor only what the policy provides.
- Admitted carrier and rating requirements. Most tech programs are written by admitted, well-rated carriers. If a specialty market is involved, our explainer on admitted vs. non-admitted insurance covers what that means.
- Security questionnaires. Not insurance, but your cyber application answers and your customer security questionnaire should tell the same story.
Carriers for Maryland tech companies: ERGO Next, Travelers and Chubb
At the earliest stage, when two founders need GL and a modest E&O limit to sign a coworking agreement or a first customer, ERGO Next is often the fastest route. It quotes professional liability, GL and workers comp digitally for small firms in Maryland, DC and Virginia, which matters when a customer is waiting on a certificate.
Once there is revenue, a priced round or an enterprise customer, Travelers and Chubb become the primary markets. Travelers writes technology packages, E&O, cyber and umbrella coverage for established companies and is universally recognized by procurement teams. Chubb is a leading insurer for venture-backed technology companies, particularly for D&O, cyber and higher-limit tech E&O. Erie and MGT cover the office package. Because we are independent with 19+ carrier partners, we can move you between markets as the company changes.
How to get a Maryland tech startup insurance quote from Terrapin
- Send us the trigger document. Fill out the business quote form or call 240-243-0042 and attach the MSA insurance exhibit, term sheet requirements or lease clause. Tell us what the product does, your revenue and funding, headcount and where your employees are located.
- We quote the stage-appropriate program. Tech E&O and cyber first, GL or a BOP, then D&O, EPLI and workers comp as the company’s situation requires. Early-stage companies often get ERGO Next numbers the same day; venture-backed companies get Travelers and Chubb options within a few days.
- Bind, certificate and set a review cadence. We issue certificates with the wording your customer specified and schedule a program review at each funding round, major customer win, new state hire or lease, so limits keep pace with the business.
Ready to get covered? Call 240-243-0042 or request a business insurance quote online. Our office is at 1300 Piccard Dr. #201, Rockville, MD 20850.