Cybersecurity Insight: Why Most Companies Are Already Insured

 Importance of Cyber Insurance

• Cyber insurance remains a critical issue for startups and other successful companies.
• While most companies do have cyber insurance, some still don't, particularly among startups.

Statistics and insights

• 86% of founders report having some form of cyber insurance.
• 14% of founders operate without existing coverage. 
  • Half of these cite cost as the primary reason.
  • It's not due to a lack of understanding or perceived value.

Risk and Coverage

• Startups are high-risk businesses, making cyber insurance even more essential.
• Many startups have already experienced losses from cyber risks.

Customization of Policies

• 52% of startups report having cyber coverage customized to their needs.
• Coverage varies, but many obtain the most comprehensive policy available to them.

Cost and Preventive Measures

• Cost is a significant barrier for some startups.
• To reduce costs, implementing good internal controls before underwriting can help.
• Effective preventive measures may lead to lower-cost policies.

Takeaway

• Cyber insurance is vital for mitigating risk in the startup and tech worlds.
• Evaluate your options and consider internal controls to make cyber insurance more affordable.

If you have questions or want to delve deeper into today's topics, visit at RiskCoverage.com for additional resources. Until next time, stay insured and stay informed!

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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.

The stats show that 86 percent of founders say they already have some form of cyber insurance, so that's good. However, 14 percent 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.

A lot of people 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 percent reported having cyber coverage that is customized to their needs or the most comprehensive they were able to obtain. They got the best policy they could.

It's still an issue in the startup world and in the tech world, and cost is still part of it. 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 erwriting four policy. If you already have some good preventive measures, you may be able to get a lower-cost policy for your cyber insurance.