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What You Need to Know About Cybersecurity Insurance

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We live in a connected world. Technology has made it easier than ever to connect with friends, customers, family, and even strangers on the internet. Individuals and businesses alike are able to do this through a multitude of platforms.

For businesses, technology has made it easier by connecting business owners to their customers, streamlining processes, and helping implement more efficient systems.

For all the advantages of using technology, unfortunately, there are disadvantages, as well. Especially as a business owner. Our connected world introduces your business to new risks every day. Data breaches, theft, ransomware attacks, and other system hacking just scratch the surface of cyberattacks that could hit your business.

These cyberattacks can affect your business and your customers in debilitating ways.

As a business owner, a cyberattack could cost you money, your reputation, and ultimately may eliminate the success of your business.

“Among small businesses with fewer than 250 employees, the average reported cyberattack cost was about $25,600,” according to a 2021 report from Hiscox, an insurance provider. “That amount could be enough to shutter some small firms.”

Cybercriminals tend to be very opportunistic and prey on companies that may have fewer defenses in place. This tends to be smaller businesses that appear to have their guard down.

This makes it especially important for small or mid-sized businesses (SMB’s) to utilize cybersecurity insurance to help protect their businesses. Let’s take a look at a few types of insurance options that could apply to your business.

First-party Coverage

This type of cyber insurance coverage helps the affected company recover damages and rebuild after a cyberattack. Often this covers:

  • Investigation of the incident.
  • Risk assessment of future cyber incidents.
  • Lost revenue due to business interruption.
  • Ransomware attacks payments based on coverage limits.

This also will usually cover the cost of communicating with customers and providing them with cyber monitoring such as credit monitoring. This type of coverage is also often referred to as data breach insurance.

Liability Coverage

If your company works with other businesses or customers you could be held liable for any damages caused by compromised information through a cyberattack on your company. This type of coverage may be necessary when an attack happens that stalls the production of a product and now you must cover your customer’s financial loss. Or a breach in your security causes other businesses to spend extra money on protecting their assets.

Cybersecurity liability coverages also generally cover the following scenarios:

  • Attorney and court fees associated with legal proceedings.
  • Settlements and court judgments.
  • Regulatory fines for noncompliance.

Does Your Business Need Cyber Insurance?

Any business that stores data and valuable or personal information in a computer or online needs cybersecurity Insurance. This includes phone numbers, credit card numbers, addresses, social security numbers, financial data, and much more.

So chances are, if you own a business you would benefit from obtaining a cybersecurity insurance policy.

BEFORE a Cyberattack Happens

Cyber insurance will certainly come in handy after cyberattacks happen and could ultimately save your business financially from the devastating consequences of a cyberattack. This may have you thinking:

“What can I do to prevent these attacks from happening in the first place?”

This is where Expedient Technology comes in.

Utilizing a managed IT company can help you set up your business for not only general technical support in Dayton, Ohio but we can help equip you with the most up-to-date and effective cybersecurity for your business needs.

Our cybersecurity services coupled with a good cyber insurance plan will be the most effective in keeping your business safe from the devastating consequences of a cyberattack.

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