Also known as: Federal Risk and Authorization Management Program
The U.S. government's standardized security-authorization program for cloud products and services sold to federal agencies.
FedRAMP (the Federal Risk and Authorization Management Program) is the U.S. government's standard for cloud security — a government-wide program launched in 2011 to standardize cloud security assessment, certification, and continuous monitoring for cloud products and services used by federal agencies. It follows an "assess once, use many" model, so a single FedRAMP authorization (an Authority to Operate) can be leveraged across agencies rather than re-earned each time. If your AI, space, or defense startup provides cloud-based software to federal agencies, a FedRAMP authorization is generally required — proving your platform meets the government's security controls (assessed against NIST 800-53) — and it is a significant, ongoing compliance undertaking (continuous monitoring, assessments, and documentation).
Source: A-LIGN — What is FedRAMP?
If you offer a cloud product or service that a federal agency will use to handle federal information, you generally need a FedRAMP authorization at the appropriate impact level. It is a significant, ongoing compliance program — not a one-time certificate.
FedRAMP status is evidence of cyber-security maturity, which can improve how underwriters view your cyber liability and technology E&O risk. It also reflects federal-contract exposure that should be matched to your coverage.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.