Series A Fintech Insurance Playbook

What Fintech Startups Get Wrong About Series A Insurance

(And How to Fix It)

When fintech startups hit Series A, everything changes - funding, partnerships, board composition, and most importantly: risk exposure.

Yet many founders and CFOs treat insurance like a holdover from the Seed stage: a checkbox to satisfy a contract or investor. That mindset leaves many companies underinsured, overpriced, or exposed when it matters most.

We break this down in detail in our new guide: Download the Series A Fintech Insurance Guide

The 3 Most Common Fintech Insurance Mistakes at Series A

1. Buying off-the-shelf policies from digital brokers

Fast doesn’t mean smart. Many policies are templated by revenue size, not actual operations.

This leads to:

• Exclusions for core services

• Sublimits that don’t reflect regulatory risk

• Policies that miss contract-triggered exposures (e.g., SLAs, SOC2 requirements)

2. Assuming you’re too early for real risk

At Series A, regulators are watching. Enterprise clients have expectations. Investors are sitting on your board. And that means governance, compliance, and contract liability are in play.

3. Failing to negotiate coverage terms

Many founders don’t realize they can (and should) negotiate endorsements, exclusions, and carvebacks. You wouldn't accept a boilerplate contract - why accept a boilerplate policy?

What Fintechs Typically Buy at Series A

From our proprietary data on 100+ VC-backed fintechs:

Coverage	Typical Limit	Driven By
D&O	$2M–$5M	Board demands, governance expectations
Tech E&O	$3M–$10M	Enterprise contracts, API liability
Cyber	$3M–$10M	Data handling, vendor requirements
EPL	$1M–$2M	Headcount, CA exposure
Crime	$1M–$5M	Wire fraud, ACH, vendor impersonation

For benchmarks by stage, sector, and exposure profile, view the full breakdown: Get an AI-powered risk assessment here.

4 Hidden Exclusions That Quietly Kill Coverage

Even if you have insurance, these exclusions are common—and deadly:

• Regulatory sublimits (D&O): Only $100K–$250K coverage for SEC/CFPB actions

• Professional services exclusions (E&O): Your product may be excluded entirely

• AI carveouts (Tech E&O/Cyber): No coverage for algorithmic decisions or bias

• Contractual liability exclusions: Claims tied to SLAs or MSA disputes denied

These show up in more than 50% of policies we review. And most brokers don’t flag them.

How to Fix It: Strategy, Not Just a Policy

At Upward Risk Management, we believe insurance should be:

1. Mapped to real exposures (not just revenue)

2. Benchmarked against peers with similar business models

3. Structured intentionally to scale as you grow

4. Reviewed line-by-line for red flags most brokers miss

Start with our AI-powered risk report tailored to fintechs: Request your custom analysis here

Get the Guide, Get Ahead

Don’t wait for a contract negotiation or regulatory request to expose your coverage gaps.

Get the playbook we built specifically for fintechs raising institutional capital: Fintech Series A Insurance Guide (PDF)