Coverdash has partnered with Drata, a security and compliance automation platform. This collaboration aims to automate the cyber insurance component of SOC-2 compliance, significantly simplifying the process for businesses.
SOC-2 compliance, developed by the American Institute of CPAs (AICPA), is a voluntary framework that ensures companies securely manage customer data to protect privacy and confidentiality. It is particularly relevant for technology and cloud computing companies that handle sensitive information. Achieving SOC-2 compliance is intended to demonstrate a company’s commitment to maintaining high standards of security and privacy, which can be crucial for building customer trust and securing business partnerships.
Drata’s platform streamlines the compliance journey from start to audit-ready, offering continuous support from security and compliance experts. By integrating Coverdash’s embedded insurance capabilities, Drata allows clients to source necessary cyber insurance and fulfill SOC-2 cyber security insurance requirements without leaving the portal.
Coverdash’s data analysis reveals that SOC-2 compliant companies enjoy substantial benefits, including a 15-20% reduction in annual cyber insurance costs. Furthermore, achieving SOC-2 compliance is critical for obtaining quotes from cyber insurance carriers, with non-compliance reducing the ability to receive quotes by 15-25%.
Currently, only 17% of SMBs in the U.S. have cyber insurance, and even fewer meet SOC-2 standards. With the rise in cyberattacks, particularly targeting SMBs, combining cyber insurance and SOC-2 certification is crucial for preventing the severe consequences of data breaches.
Compliance Framework
Coverdash emphasizes the importance of protecting businesses while maintaining cost-effectiveness. Their partnership with Drata merges the advantages of cyber insurance with SOC-2 compliance, helping businesses combat cybercrime and focus on core operations.
Drata, advanced security and compliance automation platform, assists thousands of companies in streamlining over 20 compliance frameworks, including SOC-2, ISO 27001, and GDPR. This continuous, automated control monitoring and evidence collection enhances security posture, reduces costs, and minimizes the time spent preparing for annual audits. Drata’s supporters include ICONIQ Growth, GGV Capital, and Salesforce Ventures.
Founded in 2022, Coverdash is a digital business insurance agency for startups and small businesses. Their embedded technology allows any partner to offer a complete insurance experience with a single line of code. Headquartered in New York, Coverdash is a licensed insurance agency across all 50 states.
Source: Coverdash and Drata Team Up to Automate Cyber Insurance Component of SOC-2 Compliance.