Founder Shield Review 2024 — Is It Right for Your Startup?

Businessmen shaking hands.

Finding the best business insurance for a rapid-growth startup can be a critical, yet challenging task. Enter Founder Shield, a specialized insurance brokerage firm that has quickly made a name for itself in the digital entrepreneurship space. This review explores Founder Shield’s offerings, the pros and cons of choosing its coverage as well as how the company compares to other providers. 

What Is Founder Shield?

Founder Shield is a specialized insurance brokerage firm that caters primarily to startups and tech companies. This provider offers a streamlined, digital-first approach to obtaining business insurance with a focus on providing customized coverage that addresses the unique risks faced by innovative, high-growth companies. 

Founder Shield’s product range includes essential policies, such as general liability, professional liability, cyber liability, and directors and officers (D&O) insurance. What sets Founder Shield apart is the firm’s deep understanding of the startup ecosystem, allowing it to offer tailored advice and scalable insurance solutions that can grow with a company. 

Founder Shield at a Glance

Insurance ProductsCyber, General Liability, Fiduciary Liability, Workers’ Compensation, Crime, etc.
Best ForStartups and tech companies
Founder Shield logo.

Pros & Cons of Founder Shield

Pros

  • Specialized for Startups: You’ll get tailored insurance solutions for tech companies and startups.
  • User-Friendly Process: The company has a simple online application and quote system.
  • Customized Coverage: It offers personalized insurance packages based on specific business needs.
  • Industry Expertise: Founder Shield has a deep understanding of the unique risks faced by tech and startup companies.
  • Scalable Solutions: You’ll have the ability to adjust coverage as your business grows and evolves.

Cons

  • Limited to Specific Industries: It may not be the best fit for businesses outside the tech and startup ecosystem.
  • Potentially Higher Premiums: Specialized coverage might come at a higher cost when compared to generic business insurance.

Founder Shield Alternative: Embroker

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Founder Shield Insurance Products

Founder Shield Insurance Products.

Founder Shield offers core, specialized, and health and benefits policies, allowing businesses to customize their insurance policy packages to fit their needs. Here’s a few of the company’s most popular startup insurance policies to consider: 

Cyber Liability

Founder Shield’s cyber liability policy covers businesses in the event of a third-party lawsuit involving cyber crime. This may include cyber attacks, ransomware, data breaches, or other similar events. This policy can provide recovery benefits like data restoration or reimbursement for related losses. 

Crime

Whether it’s caused by an employee or a third party, crime insurance protects businesses against damages due to theft. This policy covers a myriad of theft types, such as phishing scams, unauthorized fund transfers, and employee theft. 

Directors & Officers

D&O insurance protects the personal assets of a company’s directors and officers in the event of lawsuits made against these individuals. These suits are commonly filed by shareholders, competitors, and investors. 

Employment Practices Liability

Employee practices liability insurance (EPLI) protects a company against employee lawsuits regarding wrongful termination, discrimination, defamation of character, invasion of privacy, or sexual misconduct or harassment. With this policy, the insurance company pays for the policyholder’s legal defense as well as the settlement or judgment. 

Errors & Omissions

Also referred to as professional liability coverage, errors and omissions (E&O) insurance protects businesses in the event of a third-party or client lawsuit that claims the work or service provided by the company is inadequate. This type of policy covers legal defense costs, loss of earnings, and other damages resulting from an event of this type. 

Fiduciary Liability

Many companies offer benefits packages to employees, but a company can be held liable for damages if their benefits administrator practices improper plan care. Fiduciary liability insurance protects a company from legal liability should there be a mishap by their benefit administrator. 

General Liability

General liability covers basic business-related risks. This may include bodily injuries, property damage, advertising injuries, or personal injuries. This policy offers protection to help businesses overcome setbacks related to unexpected events or accidents. 

Product Liability

In the event of a third-party lawsuit claiming bodily injury or property damage from a business’s product or service, product liability insurance covers the policyholder’s legal defense fees and settlement costs. This may be especially useful to retail businesses, distributors, or manufacturers. 

Intellectual Property

Intellectual property insurance protects businesses in the event of infringement accusations. This may include infringement or the potential for infringement of a company’s trademarks, trade secrets, copyrighted materials, or patents. 

Venture Capital Asset Protection

Venture capital asset protection is a combination of D&O and E&O insurance, protecting businesses against lawsuits made by partners, employees, portfolio companies, vendors, or regulators that claim failure in management. While this type of policy can be used by private equity and venture capital (VC) firms, it’s often used by VC-backed companies as well. 

How to Get a Founder Shield Quote

Founder Shield offers a streamlined process for obtaining insurance quotes tailored to startups and technology companies. To begin, simply apply via the Founder Shield website. You’ll need to provide some relevant information about your business, which typically includes details like your company’s industry, size, revenue, and specific insurance needs.

Once you submit the completed online form, Founder Shield’s team of insurance experts will review your application. They analyze the provided information to assess your company’s risk profile and insurance requirements. Shortly thereafter, a Founder Shield representative will contact you with a customized insurance quote. This personalized approach allows Founder Shield to offer coverage options specifically tailored to your business’s unique needs and challenges in the startup or tech ecosystem.

Founder Shield Reviews

Founder Shield boasts a rating of 4.9 out of five stars on Reviews.io. The company’s positive reviews commented on its favorable rates, excellent customer service, and usability for startups and high-growth companies. Founder Shield has only a handful of negative reviews with no three- or four-star reviews currently listed on Reviews.io. The company didn’t respond to positive or negative reviews. 

Here are some reviews from Reviews.io by people who used Founder Shield for their businesses:

“The rates seem good (lower than what our CFO and Acct typically see), and the tech seems good as well, but Founder Shield has really earned my trust through their customer success team. They are very responsive, empowered to solve sticky problems, and work quickly. I’ve also noticed that the same individuals tend to respond, which tells me, as a business owner, that they’re good at taking care of good people.”

“As a small, high-tech startup, Founder Shield has been very helpful … from the early days helping us find the basic coverage, to today with more complex needs. And they are responsive when we need help with policy details or new coverage. We even find nuggets of value in their newsletters. All around we have been happy with our choice to partner with Founder Shield.”

“Generally a good system and pretty good customer service. There are annoyances though here and there as not of the process is online and still requires ‘old school’ paperwork and odd payment situations.”

“We are a growing medical device company with a complicated mix of coverages needed for our business. Foundershield has gotten the job done for us every year even getting the costs lowered while raising the breath of coverage. A great group of people who are professional and helpful.”

Founder Shield Alternatives

While Founder Shield boasts a myriad of coverage options for startups and high-growth companies, there are alternatives in the space that may better suit your business needs. Embroker, Next Insurance, Vouch, and Thimble are popular Founder Shield alternatives, and here’s how they measure up against this insurance provider. 

Embroker vs. Founder Shield

Embroker and Founder Shield both cater to startups and tech companies, offering digital-first insurance solutions. Embroker is known for its proprietary technology that automates much of the insurance process — potentially leading to faster quotes and streamlined policy management. Founder Shield, on the other hand, emphasizes its personalized approach and deep understanding of startup-specific risks. 

While both offer a range of business insurance products, Embroker may have a slight edge in terms of technological innovation whereas Founder Shield might provide more hands-on guidance.

Next Insurance vs. Founder Shield

Next Insurance targets small businesses across various industries, offering a highly automated, artificial intelligence (AI)-driven approach to insurance. The company’s platform allows for instant quotes and immediate policy binding in many cases. Founder Shield, while also digital-focused, provides more specialized coverage for startups and tech companies. 

Next Insurance may be more suitable for a broader range of small businesses seeking quick, straightforward coverage while Founder Shield offers more tailored solutions for tech-oriented startups that may require more complex insurance packages.

Vouch vs. Founder Shield

Vouch and Founder Shield share a similar focus on serving startups and technology companies. Vouch stands out for its backing by Silicon Valley Bank and its integration of banking services with insurance offerings — potentially providing a more comprehensive financial solution for startups. 

Founder Shield, however, maintains a pure focus on insurance that might allow for deeper expertise in this specific area. Both offer customized policies, but Vouch’s additional banking features could be attractive to startups seeking an all-in-one financial partner.

Thimble vs. Founder Shield

Thimble distinguishes itself with its flexible, on-demand insurance policies that customers can purchase by the hour, day, or month. This makes it particularly attractive for freelancers, gig workers, and small businesses with variable operations. 

Founder Shield, in contrast, offers more traditional policy terms with a focus on comprehensive coverage for tech startups. While Thimble’s flexibility might appeal to very early stage or part-time entrepreneurs, Founder Shield is likely a better fit for established startups looking for robust, long-term coverage tailored to the tech industry’s specific risks.

Is Founder Shield Right for Your Startup?

Founder Shield mission.

Founder Shield offers startup-focused insurance coverage that’s customizable to meet specific business needs. But, it’s important to determine whether or not the platform is a perfect fit for your business. 

It’s particularly well-suited for:

  • Tech startups and emerging technology companies
  • High-growth businesses in need of scalable insurance solutions
  • Founders who value industry-specific expertise in their insurance provider

However, it may not be the best fit if:

  • You’re a traditional small business outside the tech sector
  • You’re looking for the absolute lowest-cost insurance options

The bottom line? Founder Shield offers an excellent insurance solution for tech startups and emerging companies in the digital space. The company’s specialized focus allows it to provide tailored coverage that addresses the unique risks faced by businesses in this sector. While Founder Shield’s premiums may be higher than generic business insurance providers, its customized approach and deep understanding of the startup ecosystem can provide significant value.

For tech entrepreneurs and startup founders who prioritize comprehensive coverage and industry-specific expertise, Founder Shield is worth serious consideration. 

Frequently Asked Questions

What does Founder Shield do?

Founder Shield is an insurance brokerage firm that specializes in providing tailored insurance solutions for startups and tech companies. The firm offers a range of business insurance products, including general liability, professional liability, cyber liability, and D&O insurance, among others. Founder Shield’s services are designed to address the unique risks faced by fast-growing, innovative companies in the digital age.

How is Founder Shield’s customer service?

Founder Shield is known for its responsive and knowledgeable customer service team. The company prioritizes understanding the specific needs of each client, offering personalized advice and support throughout the insurance process. Many clients appreciate Founder Shield’s quick response times and the expertise of its representatives in dealing with startup-specific insurance issues.

What are some advantages of Founder Shield’s insurance policies?

Founder Shield’s insurance policies are tailored specifically for startups and tech companies, offering coverage that addresses industry-specific risks. These policies are typically flexible and scalable, allowing for easy adjustments as a company grows. The company’s policies often include features like worldwide coverage and protection against emerging tech risks, which may not be standard in generic business insurance policies.

Should I shop around for business insurance?

Yes, it’s generally a good idea to shop around for business insurance. Different providers may offer varying coverage options, premiums, and terms. By comparing multiple quotes, you can ensure you’re getting the most appropriate coverage for your specific needs at a competitive price. However, when comparing quotes, consider the cost as well as the coverage details, the provider’s expertise in your industry, and their reputation for customer service.

Do startups need business insurance?

Yes, startups typically need business insurance to protect against various risks that could potentially derail their growth or even force them out of business. Insurance can cover legal fees in case of lawsuits, protect against property damage, provide coverage for cyber attacks, and even help attract investors (many of whom require certain types of insurance like D&O policies). The specific types of insurance needed can vary based on a startup’s industry, size, and specific risks, but having appropriate coverage is generally considered essential for startups.