What is Cyber Risk Insurance?
Cyberattacks are a major threat to all types of businesses and are becoming more common every year. From 2016 to 2019, the cost of cyberattacks to insurers in the United States nearly doubled, and the total number of cyber risk insurance policies increased by about 60%. From data breaches to ransomware attacks, cyberattacks can result in major financial damage, making it important for businesses to take steps to protect themselves from these digital threats.
Cyber risk insurance can help businesses pay for the costs associated with a cyberattack, including legal defense costs, data restoration, lost business income, and other expenses. With the right cyber insurance policy, you can respond to cyberattacks as fast as possible and mitigate the damages that your business suffers.
At KSA Insurance, we partner with Coalition to offer cyber risk insurance with a broad range of coverage options to help protect businesses against cybercriminals. Find out more about “what is cyber risk insurance”.
Contact us today to learn more about cyber insurance and request a quote.
What is Cyber Risk Insurance?
Cyber risk insurance is an insurance product that is designed to help businesses mitigate damages caused by cyberattacks.
There are a number of potentially devastating cybercrimes that businesses are vulnerable to, including ransomware attacks, data breaches, distributed denial-of-service (DDoS) attacks, phishing scams, and data extortion scams.
Cyberattacks like these can result in significant expenses, including data restoration costs, ransoms, crisis and reputation management costs, and lost business income.
Without cyber insurance, these costs can be debilitating, especially for small businesses that don’t have the cash flow to cover these expenses out-of-pocket.
Many cyber risk insurance policies, like policies provided by Coalition, also include active threat monitoring and threat response services to help businesses prevent and react to cybercrimes.
What Does Cyber Insurance Cover?
Cyber risk insurance covers a wide range of expenses that may result from a cyberattack. This may include expenses related to:
- Crisis response
- Crisis management
- Reputation management
- Notifying affected customers and clients
- Lost business income
- Hardware replacement
- Threat monitoring
Cyber risk insurance provides comprehensive crisis response services to help businesses recover from cyberattacks as quickly as possible.
Who Needs Cyber Risk Insurance?
Nearly all businesses can benefit from carrying cyber risk insurance. Regardless of your industry or location, if your business handles and stores sensitive data, cyber risk insurance is essential.
Not only is your company’s sensitive information at risk of being stolen by cybercriminals, but your customers’ and clients’ personal information is also at risk. Cyberattacks can impact anyone that has worked with your business, and it is the responsibility of the business to take steps to protect its customers’ information.
The cost of data breaches and other cybercrimes can range from thousands to millions of dollars, making it important for small businesses, in particular, to have cyber risk insurance to ensure they are able to stay afloat if they are targeted by cybercriminals.
How Much Does Cyber Risk Insurance Cost?
Cyber risk insurance costs can vary widely, ranging from hundreds to thousands of dollars per year depending on various factors.
The cost of your cyber insurance policy may be influenced by:
- Business size
- Number of employees
- Type of data your business stores
- Number of employees with access to sensitive data
- Coverage level
- Claims history
- Annual business revenue
A KSA Insurance agent will work with you to find a comprehensive, affordable cyber risk insurance policy that meets all of your needs.
Other Ways to Protect Against Cyberattacks
There are several precautionary steps businesses can take to protect against cyber threats.
Keep these tips in mind to protect against cyberattacks:
- Train employees to ensure they understand the cyber threats that can impact your business.
- Set strict workplace password policies, and use two-factor authentication (2FA) when possible to safeguard accounts.
- Ensure employees understand how to identify and avoid phishing scams.
- Encrypt all sensitive data.
- Hire a third-party company to conduct penetration testing and assess your vulnerabilities.
- Limit the data you work with so that you aren’t storing any sensitive information that your business doesn’t need.
Not only can these steps lower the risk of being impacted by a cyberattack, but they may also be able to lower your cyber risk insurance premiums.
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Cyber risk insurance offers essential coverage that can help businesses offset the costs they incur after a cyberattack.
At KSA Insurance, we work with businesses in South Carolina and across the southeastern United States to help them find affordable cyber risk insurance policies that protect them against a variety of cyber threats.
Contact us today to request a quote and learn more about cyber insurance.