Embroker Tech Benchmarking: February 2025 Newsletter

The state of tech insurance: 2025

Better late than never, right!?

If we had to pick one word to sum up 2025 so far, it would be uncertainty.

Just two months in, 2025 has already driven home the point that change is the only constant.

Of course, change doesn’t always have to be something bad or scary. In fact, for tech companies, embracing change is the secret ingredient for success in today’s business world. Because the alternative is to become irrelevant and left behind.

But while change brings new opportunities, it also inevitably brings new risks. That’s why tech companies must invest in risk management practices — including business insurance — to protect against potential threats that could derail things.

And with rising costs, policy changes, AI risks, increasingly sophisticated cyber threats, skills gaps, and shifting economic conditions, there’s a lot that tech companies need to plan for. A lot.

With that in mind, we figure this is the perfect time to review our insurance trends from 2024 for a peek into how tech companies have been handling risk, and how tech firms can stay ahead of things in 2025.

So buckle up because we have a lot to cover.

Let’s get into it.

• What’s going on?
• Embroker Tech Business Insurance Index Report
• Risk Profile tool for tech companies
• What’s new from Embroker

What’s going on?

How can tech leaders manage emerging generative AI risks today while keeping the future in mind  — Deloitte

This in-depth analysis explores different generative AI risk categories and how tech leaders can manage those risks with effective strategies.

Employment law experts break down age discrimination lawsuit against John Deere — MSN

A former John Deere employee has filed a lawsuit against the company alleging age discrimination for his employment termination. The lawsuit claims that John Deere fired employees over 60 at a 7.5 times higher rate than employees under 40.

FBI Says Backup Now—Advisory Warns of Dangerous Ransomware Attacks — Forbes

Another day, another cyber threat. The FBI is raising an urgent alarm about a dangerous ransomware group known as Ghost. This article outlines what you need to know to stay protected.

Proper employee termination policies help reduce employer’s legal risks — Thomson Reuters

Improper (or worse, illegal) employee termination is a surefire way to find yourself in legal hot water, facing financial consequences. This piece does a deep dive into proper termination procedures to avoid wrongful termination lawsuits.

Embroker Tech Business Insurance Index

It’s safe to say that 2024 was filled with AI disruption. The explosive growth of AI and ethical questions surrounding its use, combined with escalating cyber incidents, have had many businesses on edge. Yet amidst the turmoil, tech companies found a silver lining: A softer-than-expected insurance market.

This enabled many businesses to expand their protections to better match their risk profiles, while others optimized their insurance coverage to focus on critical risk areas while reducing limits in lower-risk areas.

This year’s Embroker Benchmarking Report provides insight into how tech companies approached risk management in 2024 by analyzing purchase and decision-making behavior for premiums, limits, and more, and enabling businesses to better understand how their peers navigate risk.

While premiums were down year-over-year in 2024, Embroker’s Benchmarking Report highlights how premiums are impacted based on the various growth stages of a company, underscoring how risk changes as a business grows.

Some key takeaways from the report include:

• Employment practices liability insurance (EPLI) premiums rose by 106% for startups that increased their teams from 10-30 to 30+ employees, showcasing the direct correlation between risk and employee headcount.
• 92% of tech companies opted for a $1 million limit on EPLI coverage in 2024, up from 89% in 2023.
• Directors and officers (D&O) insurance premiums increased by 116% for startups that grew from between $5 million and $25 million in funding to more than $25 million.
• Premiums for tech errors and omissions (E&O)/cyber coverage increased by 97% for startups that went from less than $1 million to between $1 million and $5 million in revenue.
• One in five tech companies with less than $1 million in revenue chose the highest E&O limit of $5 million, double the number of companies in 2022.

So far, 2025 continues to bring much change and uncertainty, with shifting economic conditions, a labor shortage, and the ever-increasing threat of cyber incidents — not to mention rising claims activity.

It’s clear that businesses need to stay on top of how they address risks with their insurance coverage.

You can check out the full Embroker Benchmarking Report below.

Risk Profile for tech companies

One crucial factor that the Benchmarking Report findings highlight regarding risk is that you can’t plan for what you don’t know.

Knowing your business’ unique risks and how they change with your company’s growth is the key to addressing them.

So, how can you get a comprehensive understanding of the risks your business faces and how to protect against them? That’s where Embroker’s Risk Profile tool comes in.

Our digital advisor takes the guesswork out of business insurance and helps you stay ahead of potential threats by instantly assessing your specific risk areas and matching you with insurance policies that can best protect you.

No two businesses are the exact same, and neither are the risks they face. A healthcare tech firm in New York City will deal with challenges that differ from what a solopreneur mobile app developer in Topeka, Kansas, encounters. So why settle for one-size-fits-all insurance coverage?

With our Risk Profile tool, you can verify if you have the proper protections in place to safeguard your business against potential legal and financial risks. After answering a few quick questions about your company, our digital advisor uses advanced analytics to provide a personalized risk assessment and tailored coverage recommendations for what you truly need. All without any hassle.

Risks can pop up at any time with little warning, whether it’s a data breach, supply chain disruption, regulatory change, or business interruption caused by extreme weather. That’s why it’s crucial to understand your business’s risk profile and what is needed to ensure your company’s future is protected.

Because insurance isn’t just about coverage — it’s about being prepared for the unexpected.

Ready to discover an easy way to manage risk and plan for your company’s future? Check out our Risk Profile tool and try it for yourself.

What’s new from Embroker?

Upcoming Events, Stories, and More

Enhanced Embroker ONE

Exciting news for tech companies and startups! We’ve launched our enhanced Embroker ONE experience. It’s a streamlined, single-application insurance solution designed for the tech industry. Whether you’re in software development, AI, cybersecurity, or SaaS, we provide a fast and easy way to get the insurance coverage your business needs.

Coverage for Embroker’s Tech Business Insurance Index

Check out the most recent coverage for our new report from leading publications:

• Insurance Journal
• Business Insurance Magazine
• Insurance Edge

SaaS risk assessment template

A single cyber incident could jeopardize your SaaS company. But are you doing enough to prevent that from happening? This article includes a step-by-step SaaS risk assessment template to help you stay protected.

Like what you’re reading?

Check out the Embroker Resource Center for more