Most business owners know about general liability coverage and property coverage. Both are part of a standard business insurance policy. But every policy has a specific purpose. Each policy insures against a defined set of risks. Does your business need cyber risk coverage?
In today’s market, cyber risks are a bigger concern than ever and it’s not just big businesses at risk.
What is a cyber risk?
Cyber risk insurance addresses several concerns. Nearly every business stores customer information. Even if your business doesn’t store data, someone can steal customer information while in transit or through other means. Imagine what could happen if hackers gained access to your computers or your network, the same network you use to process payments.
Cyber risk coverage covers risks for both your business and risks for your business partners or customers.
The cost of putting the pieces together after a data breach can devastate a small business. There may also be liabilities to customers and other businesses. Notification costs can add to the expense.
A standard business insurance policy doesn’t cover these risks. However, some policies offer cyber risk coverage as an add-on. In other cases, a standalone cyber risk policy may be a better way to protect your business.
What does cyber risk insurance cover?
You can customize your policy most times, particularly your coverage limits. This means you don’t have to pay for more coverage than you need.
Here are some risks your policy may cover:
Your coverage can also protect your business against liability to others. Consider the following:
Legal defense costs
Legal settlement costs
Damage to other networks or computers
Getting your business covered
Cyber risk insurance is often less expensive than you might think. But the costs of not having coverage can put your business at risk.
Many businesses are similar but even within the same industry, each business is unique. Each has different security measures in place and each has unique exposures.
To properly insure your business against cyber risks, reach out to your broker to discuss your needs. Together, you can build a customized solution that protects your business and fits your budget. The first step in protecting your business is to have a candid conversation.