Video by mattmurphyai

This is a conversation I never expected to be having with VibeCoders, but I'm having it almost every week now. Someone builds a product with AI, it works, they're ready to launch, and I ask them three questions that stop the conversation in its tracks. Question one. Do you have cyber liability insurance? Their eyes light up.

When you handle someone else's data and something goes wrong, you're personally liable. Not your LLC, you are. A data breach on an uninsured platform means you're paying for notification, remediation, legal fees, and any damages out of your own pocket. Cyber liability insurance costs $200 to $600 a year for most small SaaS platforms.

$200 to protect yourself from a breach that could cost $50,000? That's a win. And here's the part that nobody's talking to you about. Most insurance underwriters want to see basic security practices before they're even going to cover you. So vulnerability scans, access controls, encryption at rest. The security audit is not just a good practice.

It is a requirement for the coverage that protects your whole business. Question number two. Have you read your platform's terms of service? Does anybody read a terms of service? Supabase Vercel Stripe Every platform has terms that define what happens when things go wrong Most include limitation of liability clauses that cap their exposure at what you paid them last

month. So you paid Superbase $25. If their service causes a data loss that cost you $10,000, their liability $25. Yours, $10,000 plus. So understanding your platform agreement is not legal paranoia. It is basic business literacy. And question number three that stumps most people. Does your privacy policy match what your app actually does? Your app collects emails,