You should have at least some cyber insurance coverage if your small business keeps sensitive data online or on a computer. This is because it shields businesses from financial losses due to events such as, data breaches and theft, system hacking, ransomware extortion, and more.
You can acquire cyber insurance independently or as an add-on to a business owner’s policy from several insurers. We recommend our dependable partner Coalition, who are pleased to provide comprehensive cyber insurance with a variety of coverage options. Here’s everything you need to know about who needs cyber insurance.
Who Needs Cyber Insurance?
Due to their increased exposure to cyber risk and liability, certain industries undoubtedly require more cyber insurance than others. And many businesses are simply required by contract to carry a cyber insurance policy.
Cyber insurance is necessary for industries that are subject to strict state, federal, and international regulations. Hospitality, retail, healthcare, entertainment, technology, and government contractors are some of these sectors. Also, the organizations in charge of gathering and maintaining sensitive data, individual financial records, and individual health records should be especially interested in acquiring cyber insurance (such as credit card data, patient files, doctor information).
Large-scale companies with a lot of clientele will also need this insurance. In the event of a data breach, insurance can help these companies pay for any regulatory fines that may be imposed. First-party policies can cover this expense, which can be significant for businesses with big customer bases because state laws frequently require businesses to notify customers of data breaches.
Finally, firms with significant financial gain or valuable digital assets will benefit greatly from this insurance. Because larger firms are likely to have more valuable data, which could result in a more expensive ransom, it can be challenging to anticipate the costs of cyber events.
If you’re unclear whether your company needs cybersecurity insurance, speak with an agent at KSA, who can assess your risk tolerance and potential premium costs to help you decide if it’s the best investment.
What Isn’t Covered by Cyber Insurance?
Sometimes when a company wants cyber insurance, they are looking for specific coverages. But cyber insurance doesn’t cover everything. Below is a brief list of some things that companies might expect to be covered, but are not.
- Customers often leave a company following a breach, damaging the reputation and brand of the business
- A decline in sales/profits
- Market share decline
- Share price decline
- Property damage
- Intellectual property may not be replaced
- If crimes are committed, this will not be handled by the insurance
- Finances will not be covered for pro-active measures
What is a Cybersecurity Attack?
Attacks might range from hostile assaults on your physical servers to phishing ruses that entrap unsuspecting users and demand critical information. Until a certain amount of money is paid, cybercriminals may employ ransomware to limit access to your entire network.
In most cases, when consumer data is compromised, it is not random or otherwise openly available information that is being targeted. With a few keystrokes, credit card information, names, phone numbers, addresses, driver’s license numbers, health information, and even social security numbers can easily fall into the wrong hands.
How Will a Cybersecurity Attack Affect Your Business?
- You can lose time. If you are not prepared for the attack, you will lose time and money trying to put the pieces back together.
- Stolen Money. The cybercriminal may use your information to wire funds from the company. The bank is not required to reimburse this if they are not at fault.
- Your reputation could be destroyed. A data breach’s potential impact on the company’s reputation is probably the most significant. Small businesses can find it more difficult to regain the trust of their customers than larger ones.
- You could receive fines. Your company can face severe fines from credit and debit card issuers if financial information is compromised as a result of a breach.
Why Are Small Businesses a Target for Cyber Criminals?
Small businesses usually have less security in place than larger organizations, making them frequent targets for cybercriminals.
In the event of a cyber attack, a cyber liability insurance policy helps and supports the company’s recovery efforts. It will give users access to professional resources and financial assistance during data breach investigation, notification, recovery, and post-recovery activities.
Get Cyber Insurance Today
Every organization can benefit from having cyber insurance. The moment to defend your business against cyberattacks is now. Our team at KSA Insurance has years of experience and the knowledge and skills to assist you with your coverage options and create a policy that meets your needs.
A free cyber risk assessment from our partner Coalition gives you an overview of your risks and weaknesses. The evaluation lists some suggested activities to help you reduce your risk in addition to highlighting your vulnerabilities. Additionally, Coalition provides access to qualified cybersecurity specialists who can respond to any inquiries you may have regarding the evaluation or the advice you are given.
Contact us today to get a quote and learn more about cyber liability insurance.