Security News > 2022 > December > Most startups have cyber insurance but are uncertain about how much risk is covered

Notably, survey results reveal that more than 68% of founders have experienced a cyber attack on one of their businesses - which may address why 86% of founders surveyed already have some cyber insurance protections in place.

The high percentage of startups with cyber insurance can partially be attributed to pressures from investors and/or board members, as nearly half cite cybersecurity insurance protections as required by one or both of these entities.

It's more than just internal factors driving founders to re-evaluate their cyber risk.

A majority of startups have substantial cyber insurance coverage but are uncertain about how much risk is truly covered.

Half of the startups with cyber insurance stated that their current policy would only partially cover their risk in the event of an attack or breach.

"As the financial and reputational costs of dealing with cyber security incidents continue to increase, businesses large and small are decidedly incentivized to invest in their digital security and risk management strategy," said David Derigiotis, Chief Insurance Officer at Embroker.

News URL

https://www.helpnetsecurity.com/2022/12/12/startups-cyber-insurance/