Because Leadership Means Getting Insurance Right

Vouch insures seed-stage and
venture-backed technology startups.

And startups that defy categorization

Cyber Coverage

In 2019, at least 7.9 billion personal records were breached.

While not every one of those led to identity theft, they could each have theoretically triggered a lawsuit by the person affected.

Cyber insurance is designed to pay the costs associated with such lawsuits when they’re targeted at your startup, as well as the costs of helping breach victims recover.

GL
General Liability

Whether you’re working on your first startup or your fifth, General Liability insurance is likely the first policy you’ve seriously considered buying. That’s because General Liability is often required by landlords, partners, and clients, all of whom you’ll likely encounter early in your startup experience.

This coverage can offer important baseline protection, protecting your business assets when visitors get injured on your property or by your product, when a third party accuses you of libel or slander, or when a lawsuit results from these types of third-party damages.

General Liability

What

What is Cyber Coverage?
COVERAGE DESCRIPTION

Cyber insurance was developed to help companies manage the risks associated with storing and processing customer data.

In the event of a cyber incident or data breach, it can cover services that reduce the likelihood of a lawsuit. These might include...

  • Forensic analysis.

  • Breach notification support.

  • Credit monitoring services.

If an impacted party decides to file a lawsuit, Cyber insurance can also cover the associated costs, including defense costs, settlements, and judgments.

Who

Which startups should get Cyber Coverage?
Companies that deal with customer data.

This includes startups that…

  • Gather, store, and host customer data.

  • Manipulate customer data.

  • Host customer networks that include data from customers’ customers.

Because so many startups are fueled by data, Cyber insurance is often essential. 

Even if you aren’t fueled by data, Vouch’s Cyber policy may offer protection. That’s because our coverage includes protection for social engineering and electronic funds transfer scams – both of which can happen to anyone at any time (more on that below).

Apply today and get Cyber coverage in as little as 24 hours.

When

When should startups get Cyber Coverage?
CYBER COVERAGE

As soon as you get the first form filled on your website, you’ve got customer data.

As with many other parts of running a startup, deciding when to get Cyber insurance requires you to consider many factors. For example:

FACTORS
  • What kind of customer data do you store? How sensitive is it?

  • How likely are you to experience a cyber incident that would lead to a regulatory action or a lawsuit?

  • What would be the impact of such a lawsuit? Could you afford it out of pocket?

  • Do you have (or will you have) any contractual obligations requiring Cyber insurance?

If your data is sensitive or opens you to regulatory or civil litigation risks, we strongly recommend purchasing Cyber insurance to protect your business.

Apply right now for Cyber Coverage.

DATA PRIVACY LAWS

Keep in mind, too, that data privacy laws (like the GDPR in Europe and the CCPA in California) are increasing businesses’ responsibility for protecting customer data.

These laws don’t just apply to startups based in Europe or California, either. They apply to any startup that serves even a single customer in Europe or California.




Why

Why get Cyber Coverage?
THE LOGIC

Simply put, data breaches are expensive.

COMMON REASONS

If your startup is responsible for exposing certain data, you might be required to…

  • Conduct forensic analysis.

  • Notify affected customers of the breach.

  • Pay for credit monitoring for those affected.

Many states also fine businesses responsible for breaches on a per-record basis. And because it’s common for startups to have tens of thousands of customer records (or more), fines can add up fast.

It’s also possible that your startup could be sued for causing or failing to prevent a breach. In that case, your policy would likely cover defense costs. 

Curious about your unique situation? Send your questions to hello@vouch.us, and we’ll send you answers!

What

What does Cyber Coverage actually cover?

Cyber insurance typically offers two types of coverage: first-party and third-party.

First-party Cyber Coverage

What it covers

Costs associated with a breach or attack on your startup’s computers or systems, including customer notification costs and credit monitoring costs.

CLAIM EXAMPLE
You don’t update the plugins on your WordPress site and a hacker uses a vulnerability to upload ransomware to your site. You can’t access any of your files until you pay the requested ransom. The first-party part of your Cyber policy can cover the payment and lets you get back to work quickly. The first thing you do is update your plugins.

Third-party Cyber Coverage

What it covers

Costs associated with a hack or breach on a client’s system – when you're the host or otherwise responsible for maintaining or manipulating their data.

CLAIM EXAMPLE
You build a mobile app for an ecommerce client. But because some of your code didn’t get checked against the known vulnerability database, there was a backdoor for hackers, who got in and lifted credit card information for hundreds of customers. When the client notices the breach, they sue you for cleanup costs: fixing the code, conducting forensic analysis, notifying affected customers, and paying for credit monitoring. The third-party portion of your Cyber policy can cover these costs.

Why Vouch?

Why get Cyber Coverage with Vouch Insurance?
VOUCH INSURANCE

Cyber insurance has exploded in recent years. As a startup, you have more choices than ever for this policy.

Our policies are designed by founders for founders. Our application takes minutes, and involves zero PDFs. Once you apply, you can have coverage within 24 hours.

For Cyber insurance specifically, our product includes two features that startups often need but that aren’t always included in basic Cyber policies:

Social engineering coverage

Fraudsters pose as friends to trick people into sharing sensitive information they then use to breach your system. Vouch’s Cyber policy offers coverage for this type of loss.


Electronic funds transfer coverage

If a scammer tricks you or one of your employees into transferring funds to a malicious third party, our coverage is designed to compensate you for your losses. (Think it can’t happen to you? These schemes are getting advanced. Read this chilling tale of a savvy founder who wired $50k to a person he thought was his partner – but who wasn’t.)

How

How do startups get Cyber Coverage insurance?
VOUCH INSURANCE

Instead of a few weeks swapping PDFs with a broker, you can…

Apply in just 10 minutes.

Get covered within 24 hours.

Handle everything online.

Ready for some peace of mind? Apply for your Cyber Coverage policy.