Cyber attacks are a growing threat to small businesses. When your business is targeted by a cyber attack, it can damage your reputation, interrupt business operations, and lead to significant financial damages.
Cyber attack insurance protects businesses against threats like data breaches, cyber extortion, phishing scams, and other common cyber attacks. Not only can cyber attack insurance help cover the costs associated with a cyber attack, but it can also help defend against cyber attacks with services like threat detection and response.
Here’s everything you need to know about cyber attack insurance, including what it is, what it covers and how much it costs.
How Cyber Attacks Hurt Small Businesses
Cyber criminals are able to identify and exploit weaknesses in small businesses’ computer systems, resulting in serious consequences for businesses and their clients. Cyber attacks pose a major threat to small businesses, as they can lead to significant financial and reputational damage.
If sensitive data is lost or stolen, your company must notify affected parties, who may find it difficult to continue trusting your business with the handling of their sensitive information. You will also have to pay for data restoration, crisis management, and other response services to recover from the breach as quickly as possible.
Cyber attacks can also lead to business interruptions, as malicious code can be used to make your business website inaccessible to employees and customers. Malware and ransomware can also be used to lock you out of accessing important files and systems, making it impossible to conduct business as usual.
What is Cyber Attack Insurance?
Cyber attack insurance is a type of business insurance that helps businesses defend against and recover from cyber attacks. This includes cyber threats like data breaches, phishing scams, data loss, damage to computer systems, and more.
Cyber attack insurance can help businesses cover the costs that may arise after being targeted by cybercriminals, including data restoration, crisis management, and legal costs.
Insurance providers typically also offer services to policyholders to help defend against cyber attacks. This may include active threat monitoring, alerts, and incident response services.
At KSA Insurance, we provide our clients with a variety of helpful resources to help them improve their cybersecurity practices and protect themselves against cyber threats. This includes a cybersecurity planning guide, a cyber risk exposure scorecard, and employee training materials.
What Does Cyber Insurance Cover?
Cyber insurance helps businesses cover the costs that they incur following a covered cyber attack.
Following a data breach, phishing scam, or another cyber attack, cyber insurance can help cover expenses relating to:
- Data restoration
- Crisis management
- Reputation management
- Business interruption (lost income, operating expenses, etc.)
- Damaged computer systems
- Legal settlements
Cyber attacks can cause extended business interruptions and lead to significant financial damages. Cyber insurance ensures businesses are able to recover from cybersecurity breaches quickly and return to conducting business as usual.
How to Prevent Cyber Attacks
Even if you already have cyber attack insurance, there are several other simple steps you can take to minimize your risk of experiencing a cyber attack.
Keep these tips in mind to help prevent cyber attacks:
- Create a formal risk management plan.
- Educate and train employees in cybersecurity principles.
- Ensure applications and software on business devices are up-to-date.
- Regularly back up important business data.
- Make sure employees know how to identify and avoid phishing scams.
- Install and use high-quality antivirus software.
- Restrict access to physical computers and other devices.
- Require each employee to have an individual user account.
- Regularly change passwords.
- Enable two-factor authentication whenever possible.
- Limit access to data to minimize the chances of data loss or mishandling.
Businesses should also consider using the Federal Communications
Commission’s (FCC) Cyberplanner tool to create and save a custom cybersecurity plan.
How Much Does Cyber Attack Insurance Cost?
Cyber attack insurance offers affordable protection for businesses that want to ensure they are covered against cyber threats.
The cost of cyber attack insurance can vary depending on several important factors, including:
- Number of employees
- Type of data stored
- Amount of data stored
- Cybersecurity and risk management practices
- Claims history
- Annual business revenue
- Coverage level
At KSA Insurance, we’ll work with you to find a comprehensive, affordable cyber attack insurance policy that suits your unique needs.
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Cyber attack insurance offers necessary coverage to any business that handles sensitive data. It can protect your business against a variety of cyber threats and ensure you are able to recover as quickly as possible and mitigate damages.
At KSA Insurance, we partner with Coalition to help businesses in South Carolina and across the southeastern United States find affordable and comprehensive cyber insurance solutions.
Contact us today to get a quote and learn more about cyber liability insurance.