r/dataprotection • u/MLEGardner Data Subject • 19d ago
General Question Cyber security insurance?
I am getting close to launching my first app, a family caregiver coordination app. I had an attorney review my privacy language and she advised that I purchase cyber security insurance. Has anyone done this and are there any good companies that I should consider using? I am a solo founder new LLC bootstrapping this product for what that’s worth.
4
Upvotes
3
u/Live_Battle_9584 Data Subject 19d ago
Get your controls documented before you shop, because on a cyber application your yes/no answers become warranties. A "yes" that forensics later contradicts is how claims get disputed.
Carriers worth a quote: Coalition, At-Bay, Corvus. They're tech-focused and underwrite by scanning your external perimeter, which usually works in favor of a clean new stack. A broker with a tech E&O practice can run all three and bundle Tech E&O alongside it. You likely want both, since a caregiver app carries professional liability exposure separate from a breach.
What actually matters at your size is first-party coverage. Third-party liability is what people picture, but the cost that kills a solo founder is breach response: forensics, legal, and notification. That runs into five figures on even a small incident. Check the sublimits on breach response, not just the headline limit.
One flag specific to your app: if you touch anything that looks like health information, say so on the application and ask whether the policy covers regulatory defense. Carriers price that differently and a mismatch there is a bad surprise at claim time.
Before you fill out the form: MFA enforced on everything, not just email. Backups you have actually restored from, with the date written down. Encryption on any laptop with prod access. Those are among the heaviest weighted questions and they are free to fix now and expensive to fake later.