The $47,000 Insurance Waste Most SaaS CFOs Never Discover
Sarah M., CFO at TechCorp, thought she had insurance "handled." Then she discovered she was paying $47,000 more than necessary-money that could have funded two new engineers.
The 5 Hidden Cost Areas SaaS CFOs Miss
Coverage Redundancy: $12,000-18,000/year
You're paying for the same protection multiple times across different policies. Your General Liability, Professional Liability, and Umbrella policies overlap in ways brokers won't tell you about.
Real Example:
DataFlow Inc. was paying for cyber coverage in their Tech E&O ($8,000), standalone Cyber policy ($15,000), and Business Owner's Policy ($3,000). Total waste: $18,000/year on redundant cyber protection.
Broker Markup Mystery: $8,000-15,000/year
Your broker gets paid by the insurance company, not you. Their commission ranges from 10-20% of your premium. Guess who's incentivized to keep your premiums high?
The Math They Hide:
$75,000 annual premium × 15% commission = $11,250 your broker makes. If they found you a $50,000 policy, they'd lose $3,750 in personal income.
Wrong-Sized Policies: $10,000-20,000/year
You're buying coverage based on outdated risk profiles. Your $10M General Liability might be overkill while your $1M Cyber coverage is dangerously low.
Common Mistake:
SaaS companies often carry manufacturer-level GL coverage ($10M) when they need $2M max, but skimp on Cyber ($1M) when they need $5M+. Annual waste: $15,000 on wrong priorities.
Carrier Loyalty Tax: $7,000-12,000/year
Staying with the same carrier for years? You're paying a "loyalty tax." New customer discounts and competitive quotes could save you 20-30%.
Loyalty Punishment:
CloudScale stayed with their carrier for 5 years, paying $65,000 annually. When they finally shopped around, they got the same coverage for $48,000. 5-year waste: $85,000.
Hidden Fees & Charges: $3,000-8,000/year
Policy fees, terrorism charges, inspection fees, audit premiums-death by a thousand cuts that add up to thousands in unnecessary costs.
Fee Breakdown No One Shows You:
- • Policy issuance fee: $750 × 6 policies = $4,500
- • TRIA (terrorism): $200 × 6 = $1,200
- • Inspection fees: $500 × 2 = $1,000
- • Audit adjustments: $1,500 average
- Total hidden fees: $8,200/year
What This Really Costs You
Your Hidden Waste Calculator
What $56,500 Could Buy Instead:
- 1.5 new engineering hires
- 6 months of runway extension
- Complete marketing campaign budget
- Annual conference and events budget
The 5-Year Impact
That's what you'll waste if you don't fix this now. Quarter of a million dollars. Gone.
*Assuming no premium increases. With typical 5% annual increases, actual waste: $310,538
How One CFO Found $67,000 in Waste in 2 Hours
"I thought our broker was taking care of us. Then I ran the Coverage Manager analysis. In 2 hours, I discovered we were wasting $67,000 annually. I was embarrassed, angry, and motivated. We fixed it in 30 days."
Michael's Discoveries:
- Triple cyber coverage: Paying for same protection in 3 policies ($22,000 waste)
- Manufacturer GL limits: Had $10M when $2M was sufficient ($18,000 waste)
- 5-year loyalty punishment: Never shopped around, overpaying 35% ($27,000 waste)
Why Smart CFOs Miss This (It's Not Your Fault)
You're brilliant at finance, strategy, and operations. But insurance is deliberately complex. The industry profits from your confusion.
The System Is Broken
- • 143-page policies written in legal jargon
- • Brokers paid by insurance companies, not you
- • No price transparency or comparison tools
- • Intentional complexity to prevent shopping
You're Set Up to Fail
- • No insurance training in business school
- • Trusted advisors have conflicting interests
- • Industry changes faster than you can track
- • Other priorities demand your attention
The Identity Crisis
You were hired to be a strategic CFO, not an insurance administrator. Yet here you are, spending 20+ hours monthly on insurance busy work that:
- • Doesn't advance your career
- • Makes you feel like a clerk, not an executive
- • Wastes time you could spend on strategy
- • Still results in overpayment and gaps
No wonder 73% of CFOs told us insurance makes them feel "inadequate" and "frustrated."
What If You Could Fix This in 90 Days?
Imagine if you could:
Your 90-Day Transformation
Stop Wasting $47,000 Every Year
Join 500+ CFOs who've already discovered and eliminated their insurance waste. Free analysis shows your exact overpayment in 5 minutes.
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