Published on May 18th, 2016

Clark: German Startups are Underinsured

Frankfurt, 12th of May 2016 – The insurance-startup Clark conducted a survey on the insurance situation of German startups and the results are alarming. Hardly any of the questioned entrepreneurs used fundamental insurances for their own protection. In fact, the survey shows that only about 60% of the founders have business liability insurance. With the “Directors&officers”-insurance the results look worse: only less than a third of the questioned (28 percent) is covered by this type of insurance. The truth is that without these two important insurances the startups and their founders are exposed to great risks.With the all-rounder, the business liability insurance, all personal-, property- and economic damages caused through the operational business are insured. It is the counterpart to personal liability insurance. The D&O-insurance is existential for executives. Should a wrong decision by the managing director or another leading employee cause a financial damage to the company or a third party, claims for damages against the decision maker can result. With a D&O-insurance the entrepreneur is covered against these claims for damages. Surprisingly is the fact, that most of the founders grade these insurances as important, although they concluded them in the rarest cases.

Insurances are too complicated

To find the right insurance for oneself or the own company is complicated and lengthy. Therefore it is not odd, that Startup-founders preferably care more about customer growth and the next financing round than insurances. Furthermore, very few insurer are digitally well set-up and rarely fulfill the demands of the startup-scene companies.

How you insure yourself nowadays

On the pulse of time are insurance-startups by providing insurances fully digitalized with their own Apps and which show within minutes the individual insurance need. These digital insurance broker not only verify where the cheapest tariff on the market is but also by request they offer personal advice by insurance experts. The insurance startups do not only offer digital and time-appropriate solutions, furthermore are a “breath of fresh air” for the competition of insurances and they demand more transparency and clarity for the client.

About Clark

Clark is a digital insurance broker for a fair and reasonably insurance cover. With the Clark App for iOS and Android the client is able to process all insurance-issues digitally. From managing contracts to changing the contract up to the notice of damage cases. The online-insurance broker offers individuals as well as companies free of charge insurance advice. Clients are able to determine their insurance-need within minutes and get the best offers out of a portfolio of 160 insurers. Existing contracts are organized in the account and clients get notifications if there is potential for improvement. By request they can change their insurance with one click.

Clark was founded in June 2015 by Dr. Christopher Oster, Steffen Glomb and Dr. Marco Adelt.

About the survey

The survey was sent to 200 startup-entrepreneurs in Germany. Two questions each has been asked to the “Directors&Officers”-insurance, the legal expenses insurance, the business content insurance, the fidelity insurance, business liability insurance, the electronics insurance, the business interruption insurance as well as the company pension. In the first question participants were asked to rate the importance of the named insurances on a scale from one to five. In the second question they were asked which insurances they concluded. Clark conducted the survey in May 2016 (Result Chart on page 2).

Question 1: How important are the following insurances in your opinion on a scale from 1 to 5?

1= Each cent is too much 5=Makes a lot of sense

Question 2: Did you concluded any of the following insurances for your company?