The short answer: Yes, in most cases.
Even if your business doesn't operate in a traditional brick-and-mortar environment, general liability insurance is a foundational policy that protects your startup from common legal and financial risks.

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What Is General Liability Insurance?

This type of insurance covers claims of bodily injury, property damage, and personal injury that your business may be held legally responsible for.

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It typically includes:

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• Third-party bodily injury
  If a visitor, client, or delivery person is injured at your office or event.
• Third-party property damage
  If you (or an employee) accidentally damage someone else’s property during a business activity.
• Personal & advertising injury
  Covers claims like libel, slander, copyright infringement, or misappropriation of advertising ideas.
• Legal defense and settlements
  Helps cover lawyer fees, court costs, and settlements, even if the claim is groundless.

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Why It’s Important for a Software Startup

Even if you’re pre-revenue or fully remote, general liability insurance still plays a valuable role.

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1. Office-Related Risks

• If you lease a coworking space or office, your landlord may require general liability coverage.
• Accidents, like someone tripping on loose wiring or slipping on a wet floor, can result in lawsuits—even if you think it’s unlikely.

2. Client and Vendor Requirements

• Enterprise clients and government contracts often require proof of insurance before doing business with you.
• Vendors or consultants might ask for a certificate of insurance before entering into a partnership.

3. Events, Demos, and Trade Shows

• If your team attends or sponsors conferences, exhibitions, or public demos, event organizers may require general liability coverage for participation.

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What It Doesn’t Cover (But You Might Need Separately)

While general liability is a great foundation, it doesn’t cover everything. As a software startup, you should also consider:

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• Professional Liability (Errors & Omissions)
  Protects you if a client claims your software or service caused them financial loss due to a mistake, bug, or failure.
• Cyber Liability Insurance
  Covers the cost of responding to data breaches, hacking, ransomware, and regulatory penalties.
• Directors & Officers (D&O) Insurance
  Protects your leadership team from personal liability in decisions made on behalf of the company.

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The Bottom Line

General liability insurance is more than a box to check—it’s a foundational layer of protection for your software startup or any pre-revenue venture. Here’s why it truly matters:

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• Reduces Financial Vulnerability: Covers legal fees, settlements, and damages that could otherwise cripple your startup’s budget.
• Opens Business Opportunities: Many clients, landlords, and partners require proof of insurance to engage in business relationships.
• Demonstrates Professionalism: Shows investors and customers that you're serious about risk management and long-term stability.
• Supports Sustainable Growth: Lets you focus on innovation and scaling your business without being derailed by unexpected claims.

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Ultimately, general liability insurance is a strategic investment in your company’s resilience, credibility, and future success. It’s a smart, proactive move that lays the groundwork for everything that comes next.

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By understanding the potential risks and securing appropriate coverage, pre-revenue businesses can focus on growth and innovation with peace of mind.

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Speak to a Fullsteam Insurance Advisor today and learn more about costs, coverage, our process, and more.