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Everything You Need to Know About SOC 2
Tech companies bringing new yet unproven products, tools, and services to market have to lead with customer assurance – a combination of security, compliance, and insurance measures.
Today, this process is anything but straightforward. Demonstrating customer assurance is fractured, expensive, and time-consuming. This inhibits tech SMEs in verticals such as software, AI, robotics, energy, manufacturing, and biotech, who lack the compliance and risk personnel to certify and maintain robust compliance standards like SOC 2.
With the recent launch of SOC 2 automation by Koop, emerging technology companies now have a powerful tool to streamline this complex process. This blog post will guide you through everything you need to know about SOC 2 compliance and how Koop's new platform can make a difference.
What is SOC 2?
SOC 2, or Service Organization Control 2, is a compliance framework established by the American Institute of CPAs (AICPA). It is designed to ensure that service providers securely manage data to protect the privacy and interests of their clients. SOC 2 is particularly relevant for technology and cloud computing companies that store customer data.
The Five Trust Service Criteria
SOC 2 is built around five trust service criteria:
- Security: Information and systems are protected against unauthorized access, disclosure, or damage.
- Availability: Information and systems are available for operation and use as committed or agreed.
- Processing Integrity: System processing is complete, valid, accurate, timely, and authorized.
- Confidentiality: Information designated as confidential is protected as committed or agreed.
- Privacy: Personal information is collected, used, retained, disclosed, and disposed of in conformity with the entity’s privacy notice.
Why SOC 2 Compliance Matters
For technology companies, SOC 2 compliance is not just a regulatory requirement but also a competitive advantage. It demonstrates to clients and partners that your organization takes data security seriously and has implemented robust controls to protect sensitive information. This can significantly enhance your company's reputation and trustworthiness in the market.
The Challenges of Achieving SOC 2 Compliance
Lack of knowledgeable personnel and inadequate resources are the leading obstacles companies face in achieving compliance according to Thomson Reuters. That same study reported that nearly two-thirds of risk and compliance professionals see technology at the crux of reducing the complexity and cost of compliance.
On top of that, 60% of companies still manage compliance manually with spreadsheets and only 17% of businesses have some form of cyber liability coverage – when comprehensive insurance, not just cyber, is required to achieve SOC 2 compliance – underscoring emerging tech companies’ need for a cost-effective solution. Additionally, the National Association of Insurance Commissioners found that tech startups spend an average of 15% of their operating budget on various insurance policies.
Introducing Koop's SOC 2 Automation Platform
Given the challenges and cost barriers tech companies face, the need for an easy, all-in-one solution for compliance automation coupled with business insurance is clear. Koop can save companies up to 50% both on insurance policies like General Liability, Tech Errors & Omissions, Cyber Liability, and Directors & Officers coverage as well as on achieving security and compliance certifications such as SOC 2 Types I and II and ISO 27001. Purchased individually these programs could cost tens of thousands, making them prohibitively difficult to adopt for emerging tech verticals in today’s market.
In the age of weekly data breaches and cybersecurity incidents, scrutiny on early-stage companies has risen to all-time high. U.S. companies now regularly spend $10,000 per employee on regulatory and compliance costs. Koop offers a comprehensive “Stamp of Approval” for all customers and stakeholders. Integrated compliance and insurance has become not only a vector for mitigating risks but also one with tremendous return on investment, fueling sustained growth and trustworthiness.
Conclusion
In an era where data security and compliance are more important than ever, achieving SOC 2 compliance is crucial for technology companies. Koop's SOC 2 automation platform provides a powerful, user-friendly solution that simplifies the compliance process and helps emerging technology companies save time and money. By leveraging Koop's platform, you can ensure that your organization meets the highest standards of security and trust, positioning your company for long-term success.
Get Started Today
Ready to start your customer assurance journey? Get started on koop.ai/get-started or schedule a call with a risk advisor.
About Koop
Koop’s customer assurance platform helps tech companies seamlessly navigate the complexities of business insurance, regulatory compliance, and security automation in one place.
Koop provides a comprehensive suite of insurance coverage that includes General Liability, Tech Errors & Omissions, Cyber Liability, and Directors & Officers coupled with the most cost-effective SOC 2 compliance certification on the market.
