CYBER INSURANCE
Protection for the damages caused by data breaches.
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3 MIN
Cyber Insurance basic with John
What Cyber Insurance does & doesn't cover
Recommendations based on stage and vertical
Which add-ons make sense for your startup
BECAUSE
In 2019, at least 7.9 billion personal records were breached.
WHEN
- Launching products or services
- Raising a round
WHY
- Data breaches are common, and can be expensive
- Data privacy laws increase businesses’ responsibility for protecting customer data
See recommended limits based on your stage and vertical
GET COVERAGE RECOMMENDATIONTHE PROTECTION
What Cyber Insurance Covers
Identity Theft
Individual or class-action allegations.
Forensic analysis
Costs of forensic analysis, ransomware payments, settlements.
Breach of systems
On your company’s computers or systems, including customer notification and credit monitoring.
Misrepresentation
Hack or breach on a client, partner or vendor system when you’re the host of their data.
VOUCH EXCLUSIVE
Electronic funds transfer
Scammers tricking employees into transferring funds to a malicious third party.
VOUCH EXCLUSIVE
Social engineering
Fraudsters posing as friends to trick people into sharing sensitive information.
Subpoena Assistance
Costs associated with harm caused by your product, including property damage or physical injury.
ADD ON
What it doesn’t cover
- Errors & Omissions resulting from your Technology Product or Service
- Bodily Injury or Property Damage claims
- Employment Practices claims
- Fiduciary liability claims
- Workplace injuries
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FROM THE ACTUARIES
Cyber Claims Examples
Case Study
Incident
A startup that provides software testing tools experiences a breach when attackers are able to take advantage of an error in how the startup built docker images, potentially allowing attackers access to customers’ sensitive data.
Resolution
The Cyber policy covers the costs for a computer forensic investigation, public relations advice, and claims by customers for the cost to conduct their own forensic investigation.
Incident
A startup in stealth mode receives an email purportedly from one of its consultants, asking the startup to pay consulting fees owed to a new bank account. The email was actually sent by a bad actor who had hacked the consultant’s email, and the money was wired to the hacker’s bank account.
Resolution
The cyber policy responds by covering a portion of the money that was wired into the hacker’s account.
Incident
A hacker is able to gain access to the systems of a startup providing an AI enabled text adventure gaming service. The hacker is able to obtain user content from some users’ adventures, scenarios, posts and comments, including those which were not published. It also contains the associated usernames.
Resolution
The cyber policy provides coverage for a computer forensic firm to investigate the breach and fix the issue, as well as the cost to notify relevant parties pursuant to the EU’s General Data Protection Regulation.
Breach of software testing tools
Incident
A startup providing an online restaurant reservation platform holds its annual holiday party at a rented event space, and an employee accidentally knocks a painting off the wall which cracks the frame. The event space demands that the startup reimburse it for $5,000, the cost to repair the painting.
Resolution
The Cyber policy covers the costs for a computer forensic investigation, public relations advice, and claims by customers for the cost to conduct their own forensic investigation.
Fraudulent emails requesting fees
Incident
A startup in stealth mode receives an email purportedly from one of its consultants, asking the startup to pay consulting fees owed to a new bank account. The email was actually sent by a bad actor who had hacked the consultant’s email, and the money was wired to the hacker’s bank account.
Resolution
The cyber policy responds by covering a portion of the money that was wired into the hacker’s account.
AI gaming software systems hack
Incident
A hacker is able to gain access to the systems of a startup providing an AI enabled text adventure gaming service. The hacker is able to obtain user content from some users’ adventures, scenarios, posts and comments, including those which were not published. It also contains the associated usernames.
Resolution
The cyber policy provides coverage for a computer forensic firm to investigate the breach and fix the issue, as well as the cost to notify relevant parties pursuant to the EU’s General Data Protection Regulation.
INSURANCE 101
Cyber Insurance for Startups: Top Concerns and Insights
As cybercrime becomes more sophisticated and widespread, cyber security is an even more pressing concern.
Keep reading
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COMPREHENSIVE PROTECTION
Explore Insurance Coverages
General Liability Insurance
Foundational protection for the risks of running a startup.
Business Property Insurance
Protection from disaster and theft.
Directors & Officers Insurance
Protection for your founders, officers and board members.
Errors & Omissions Insurance
Protection for bugs in your product that cause financial losses.
Fiduciary Liability Insurance
Protection for mistakes with employee benefit plans.
Employment Practices Liability Insurance
Protection for allegations of wrongdoing in the workplace.
Cyber Insurance
Protection for the damages caused by data breaches.
Crime Insurance
Protection for employee theft and fraud.
Hired & Non-Owned Auto Insurance
Protection for damages while using a vehicle for business.
Media Liability Insurance
Protection for copyright infringement, defamation, or libel.
AI Insurance NEW!
Protection for damages caused by AI products and services.
General Partnership Insurance
Protection against risks unique to Venture Capitalists.
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