Being hacked sucks. It’s even worse if you’re a digital creator whose social media accounts literally pay your bills. When creators are hacked, this may mean that they cannot post sponsored content, receive payments from icons or managing your stores on Instagram is grueling, like a chef breaking his arm and having to cook with one hand.
Israeli startup excavation is trying to see if Instagram hack insurance for creators could offer a solution. Starting at $8 a month, creators can sign up for Notch’s Instagram account insurance, meaning that 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.
TechCrunch reviewed a sample insurance policy that lists an annual fee of $459 (or about $38 per month) for insurance that pays $244 for every day a writer is unable to log into their account after a hack. These daily payments begin after a 48-hour waiting period and reach a maximum of $22,000 (or 90 days) payments per year.
Notch uses a number of metrics to determine the nature of a creator’s policy.
“We look at the number of subscribers, the engagement, where the audience is from, the vertical the influencer works in, how many posts per month that person typically uploads, how many of those are sponsored posts…” explains CEO Rafael Brochi. With this information, Notch can estimate how much sponsored content an author posts per month and how much money someone of his stature is making from each post. The company can then calculate the monthly coverage fee.
It’s not an exact science, though—not all influencers are created equal, and the same level of followers or engagement can appear differently to different audiences. Also, there is no standardized base pay per brand deal, so Notch may overestimate or underestimate a creator’s income.
The key feature of the policy is that it only covers hacks. Some creators, especially those from marginalized communities, face targeted harassment on Instagram, which sometimes means attackers report their account en masse for no reason, resulting in them being banned or suspended. In these cases, whether the ban is merited or not, Notch will not cover the creator’s loss of income.
“We will likely release a policy supplement in the near future that also covers the suspension,” Broschi said. “We don’t cover these issues at this time, mainly because it’s very, very difficult to create a truly valuable product. […] That’s why we’ve moved on to the hacker part, where we believe we can help.”
Notch isn’t affiliated with Instagram, but Broshi says that’s normal for insurance companies.
“Auto insurance companies usually have nothing to do with the automaker,” he told TechCrunch. The product is currently available in Arizona, Florida, Illinois, Tennessee, and Texas – each state has different rules for insurance products, so the approval process will vary from state to state.
To be eligible for these payouts, creators must include multi-factor authentication (Ministry of Foreign Affairs). But there are many types of MFA and the policy does not offer more details. Some cybersecurity experts advise against using SMS messages as a second layer of security because SIM swap hack (someone impersonating your carrier to get hold of your SIM card) can make you powerless from fraudulent login attempts.
Beyond insurance policies, there’s always a good time take extra steps to protect your online security and digital privacyespecially if you are someone whose income is directly related to your online presence. Notch doesn’t want to get hacked because then they’ll have to pay you, but you also don’t want to get hacked because… that would suck. Speaking of which, don’t even try to develop a fake hack to get your daily payout – Notch’s contract forbids that.
So far, Notch has raised $7 million in an extended seed round led by Lightspeed Ventures. Longtime creators like Nas Daily and Casey Neistat are also investors, an important vote of confidence for the company as none of its founders have experience in the creator economy. Of the three founders, Broshi is a former investor, CPO Elool Jacoby was a senior product manager at SimilarWeb, and CTO Yuval Peled was a software engineer.
Notch was only launched this month, so we haven’t yet seen how they can help the creator crack it. But before the launch, Notch helped some creators get their account back, which is why there are testimonials on the company’s website.
As with any startup, you don’t want to be the guinea pig, but for big enough creators, the monthly payment can be worth the peace of mind it brings.
Credit: techcrunch.com /