Stay secure, connected and confident.
In today’s digital world, your business has countless opportunities and never-ending exposures. Data breaches, ransomware and other cyberattacks can disrupt business operations and necessitate costly investigations and compliance with data breach notification laws. Cyber insurance can help you manage your cyber risks with confidence, so you can focus on growing your business.
Understanding Cyber Insurance
Most businesses rely on computer systems to hold customer data and conduct daily operations, putting them at risk for cyberattacks and data breaches. As cyber risks continue to grow and evolve, cyber insurance has become an increasingly important part of commercial insurance.
Cyber insurance, also called cyber liability insurance or cyber security insurance, provides coverage for certain expenses associated with many common cyber incidents, such as data breaches and malware attacks.
Frequently Asked Questions
Do small businesses really need cyber insurance?
Hackers frequently target small businesses, so cyber insurance for small businesses provides valuable protection. It’s a common misconception that hackers will avoid small businesses in favor of large companies with deeper pockets. Although cyberattacks on large corporations tend to garner more media attention, attacks on small businesses are also common. Larger companies often have more robust cybersecurity, and hackers may target smaller companies that are seen as easier targets.
The reality is that businesses of all sizes and in all industries are at risk. Although you can reduce your cyber risks with strong cybersecurity practices, there is still a chance that you will experience a cyber incident.
Hackers are constantly changing their tactics and exploiting new vulnerabilities, and a single successful attack against your company can lead to massive losses in the form of ransom demands, business disruption, litigation, regulatory action, and compliance with data breach notification requirements. Small businesses are particularly vulnerable because they often lack the cash reserves necessary to handle these unexpected expenses.
What does cyber insurance cover?
Cyber insurance coverage can vary from policy to policy, but policies typically cover many of the costs associated with data breaches and cyberattacks.
Cyber policies may provide first-party cyber coverage for losses that the policyholder experiences after a cyber incident, such as cyber extortion, forensic investigations and business interruptions.
Cyber policies may also provide third-party cyber liability insurance coverage for claims involving customers and other third parties impacted by a cyber incident at your organization. For example, third-party cyber liability insurance may cover regulatory fines and litigation costs.
In addition to providing financial compensation after a cyber incident, cyber insurance companies also frequently provide cyber risk management support before and during a cyberattack. This support can help businesses minimize their risks and safeguard their operations.
What’s the difference between cyber insurance and data breach insurance?
Some people may use the terms cyber insurance and data breach insurance interchangeably, but cyber insurance actually refers to a much broader type of coverage. Cyber insurance typically provides coverage for a range of first-party and third-party losses, including costs associated with data breaches as well as ransomware attacks and other cyber incidents. On the other hand, data breach insurance only provides coverage for certain costs associated with data breaches. Data breach insurance may be secured as part of your cyber insurance coverage.
Does cyber insurance cover ransomware attacks?
Cyber insurance frequently covers many costs associated with ransomware attacks, including ransom payments or cyber extortion, as well as data recovery, business interruption, crisis management, and legal or regulatory expenses. However, policy terms and limits can vary, so it’s important to review your policy to determine what coverage you have in place.
How much does cyber liability insurance cost?
The cost of cyber insurance varies significantly based on factors such as company size, industry, loss history and coverage amount. To keep your cyber insurance premiums down, implement strong cybersecurity practices that help prevent the likelihood of a successful attack.
The best way to get a cyber insurance cost estimate is to request a cyber insurance quote.