It's terrible to get hacked. If you are a digital creator, your social media accounts pay your bills. If a chef broke their arm and had to cook with one hand, it would be hard for them to make ends meet.
The Israel-based startup is trying to find a solution to the problem of creators being hacked. If they get hacked and lose access to their account, the startup will pay them a stipend and help them regain control of their page.
A sample insurance policy quoted an annual fee of $450 and paid out $244 for each day that a creator can't get into their account after a hack. After a 48 hour waiting period, these daily reimbursements kick in and can be used for up to 90 days.
A creator's policy can be determined using a number of metrics.
The CEO says that they look at follower count, engagement, where the audience is from, the vertical where the person works, how many posts per month that person usually uploads, how many of them are sponsored posts... How much money someone of their caliber would make off of each post can be estimated with that information. The monthly fee is calculated by the company.
The same level of followers or engagement may translate differently for different audiences. There is no standard base pay for a brand deal so it is possible that Notch may over- or underestimate a creator's income.
The policy only deals with hacks. Sometimes bad actors will mass-report a creator's account for no reason, causing them to get banned or suspended on social media. Notch won't cover a creator's loss of income if there is a ban.
Broshi said that an add-on to the policy would cover suspension as well. It is very difficult to build a product that provides value and that is the reason we went towards the hacking part.
Broshi says that this is normal for insurers.
He said that car insurance companies don't usually have a relationship with car manufacturers. Currently, the product is available in Arizona, Florida, Illinois, Tennessee and Texas, but approval in any individual state will be a different process.
To be eligible for the payouts, creators need to use mutli-factorAuthentication. There are many types of MFA and the policy doesn't give more details. Since a sim swap hack could make you powerless against fraudulent log-in attempts, some experts advise against using text messages as a second layer of security.
If you have an income that is tied to your internet presence, it is a good time to take additional precautions to protect your privacy. It would suck if you got hacked because they would have to pay you. Don't try to engineer a fake hack to get your daily payouts, it's against the rules of the game.
The company has raised $7 million in an extended round of funding. Since none of the company's founders have experience working in the creator economy, it's important that longtime creators like Nas Daily andCasey Neistat invest in the company. Yuval Peled was a software engineer, and the other two were senior product managers at SimilarWeb.
We haven't seen how they might be able to help a creator through a hack. There are testimonials on the company's website due to the help Notch gave to some creators.
A monthly payment is worth the peace of mind it brings for big enough creators.
Cybersecurity 101: How to protect your online security and digital privacy
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