Cyber insurance remains a very important issue for startups and other types of successful companies. While most companies do have cyber insurance, some still don’t and among startups, it’s a dangerous place to be because it’s a high-risk business. And the stats show that 86% of founders say they already have some form of cyber insurance, while 14% are operating without existing coverage. And half of those say the cost is the reason, it’s not because they don’t think it’s valuable or they’re not sure what it is, about half the people that have startups don’t have cyber insurance because of cost. And a lot of these companies have already seen losses from cyber risk and the amount of cyber coverage has really been customized.
How much these startups have in place varies and 52% reported having cyber coverage that is customized to their needs or the most comprehensive they were able to obtain. So they got the best policy that they could. It’s still an issue in the startup world and the tech world and cost is still part of it so be aware that you have options. One of the things you can do to reduce costs is to have good internal controls. Before you start doing underwriting for your policies, have you already had some good preventative measures in place? If so, you may be able to get a lower-cost policy for your cyber insurance.
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