Before signing an enterprise SaaS contract, review the insurance.

The larger customer is good news. Its procurement team may also send a contract that asks more of your business than earlier agreements did. Put the insurance schedule, scope of work, and decision deadline in the same review.

Describe what the customer relies on.

Does your software support a noncritical internal task, or a process the customer depends on to operate? What implementation, integration, support, or managed services do you provide? What data do you handle? Write a short explanation in ordinary business language before turning to the policy names.

Review technology E&O and cyber individually.

Technology E&O concerns certain allegations about errors or omissions in technology services or products. Cyber review concerns separate questions about security, privacy, and incident-related costs. A package can include both, but it still has distinct coverage provisions. Travelers’ technology cyber overview describes separate E&O, privacy and security, and breach-response options within its offering.

Ask your broker to identify the actual sections and endorsements that relate to your activities. A familiar label on the declarations page is a starting point for that conversation.

Take these questions into the review.

• Do the insured activities describe the software and services you are delivering?
• How do the required limits compare with the limits and any shared aggregates in the proposed program?
• Which exclusions need attention in light of performance promises or contractual commitments?
• What retention, defense-cost, reporting, and policy-timing provisions should you understand?
• Does procurement require particular endorsements or supporting evidence?

Keep the contract and security questionnaire consistent.

Have the people responsible for product delivery, security, finance, and legal review confirm the information that belongs to them. If a questionnaire asks about a control, answer from the control actually in use. Flag a planned change as planned, and ask how updates should be communicated.

Ask legal counsel to examine warranties, indemnities, liability provisions, and service commitments. Ask your broker about their insurance implications. Neither conversation should be reduced to copying another customer’s answers.

Give the review a real deadline.

Share when the agreement must be signed and when service begins. If a requirement is difficult to satisfy, ask which items need underwriting consideration and which need discussion with the customer. Do this while there is still time for those conversations.

Related guides

• Technology E&O
• Cyber insurance
• Technology & SaaS

Bring the next decision into your insurance review.

An enterprise agreement to review? Start with your website, the services involved, and the customer’s deadline.

Request an insurance review

General educational information. Examples are illustrative. Coverage depends on the facts, applicable policy terms, underwriting, and applicable law. Submitting an inquiry does not bind, amend, or cancel coverage.

Explore all resources