If you run a startup, you already know how quickly the ground can change beneath you. Insurance is one of those things that founders set up early and then forget about until renewal season brings surprises.
As 2026 begins, it is the perfect time to evaluate whether the coverage you purchased during quieter times still fits your team, your revenue and your risk profile.
Here are six insurance areas worth revisiting this year, along with some new context from recent research and industry reports.
Double-check your key personnel’s coverage levels
Key person insurance is one of the most important but overlooked policies for early stage businesses. If you or another core team member were suddenly unable to work, investors and customers would feel the impact immediately. The policies taken out in the first year of operation often no longer correspond to reality in the second or third year.
In a study by Businesswire, analysts found that as cyber and operational risks increased, founders increasingly relied on structured protection. The same pattern applies to personal risk. As your valuation, contracts and team size change, your payout and reward expectations should also change. If sales have doubled since the contract was first signed, the original amount may not cover the critical recovery periods.
2. Rethink shareholder protection structures
Shareholder protection helps ensure that equity can be transferred smoothly if a co-founder dies or becomes seriously ill. Yet many teams leave the structure too simple or outdated. For example, your original ownership shares may not reflect new rounds of capital or new co-founders. If the agreement doesn’t match your current cap table, a crisis could bring your business to a halt at the worst possible time.
Insurance companies also adjust their underwriting rules every few years. Some have tightened medical examination requirements, while others are now combining shareholder buyout protection with critical illness features. It’s worth considering what structure suits your team best today and that a shareholders’ agreement will prevent problems rather than cause them.
3. Review death in service agreements
Death benefits are typically tied to payroll and team size. If you’ve hired aggressively in the last year, your policy may not cover everyone equally. Some companies are also switching from fixed lump sums to salary-based formulas as they scale.
In 2025, several brokers noted that group risk costs increased in industries with high burnout and high turnover. You may see the same thing with your renewal this year. Keeping your census data accurate can help prevent an unexpected increase in premiums.
A quick look at the options
- Check whether your benefit level still makes sense
- Confirm new hires are included
- Check whether your insurer has changed its group policies
4. Update life and critical health insurance for directors
Directors often have a unique mix of personal and business commitments. Life and critical health insurance policies you purchased when the business was small may not reflect your obligations today. This is also the time to consider what insurance actually covers, especially when families need to know what happens after an unexpected loss. For example, standard life insurance policies often pay out a lump sum that can help with funeral costs, while certain funeral-focused policies offer more specific assistance.
Founders sometimes assume that company benefits alone will protect them, but personal policies can play an important role. The addition of critical illnesses is also becoming more common, particularly as workplace health expectations change.
5. Reassess income protection for owners and operators
Income protection for founders is one of the areas that will most likely become obsolete by 2026. You may now be receiving a salary instead of dividends, or your salary may have increased. If this is the case, your policy’s payout amount may not match your actual financial needs.
Small business insurance buyers are embracing more personalized risk mapping. This pattern suggests that founders should take a closer look at how long they could realistically survive without income. Waiting times, payment periods and definitions of incapacity deserve a second review.
6. Reassess business disruptions and cyber dependencies
Business interruption insurance used to cover fires and floods. Now it’s just as much about cloud outages, provider downtime and ransomware. In a report from Breached Company, researchers found a spike in supply chain cyber incidents that crippled operations for days. If your business relies on a single cloud platform or automation tool, a serious disruption can occur without ever being directly attacked.
Some insurers now exclude certain cyber events unless you purchase specific coverage. Others require proof of multi-factor authentication for all apps. Checking for these changes can help you avoid any nasty surprises upon renewal.
Final thoughts
Most founders view insurance as a background task, but it is more of a living system. As your business evolves, your protection must evolve too. Spending even an afternoon reviewing the six areas above can make your business far more resilient.
