Cyber insurance may be new compared to general liability, property, and workers’ compensation insurance, but it has quickly become an essential coverage. However, many business owners don’t understand its importance because they’re not exactly sure what it is.
Do you want to learn more about cyber insurance? We have answers to some of your most common questions, including:
Cyber insurance can cover a range of cyber risks, including:
- Network security: If you suffer a data breach or other cyber event, your policy will pay to recover your network. You can also receive compensation for public relations costs, legal expenses, data restoration, and ransom payments.
- Privacy liability: Cyberattacks can compromise sensitive information belonging to you or your clients. If you get sued for losing someone else’s personal information, your policy will pay lawsuit and settlement costs.
- Business interruption: Many businesses are forced to shut down in the wake of a cyberattack. To prevent significant financial loss, your policy might pay for lost profits and fixed business expenses.
- Errors and omissions: A cyber event could prevent you from delivering the service you promised. If you fail to meet client expectations, your errors and omissions coverage helps pay for lawsuit costs.
The answer to this question is different for every business. A basic policy might be sufficient for a low-risk business, but some companies may need specialized coverage. The best way to know what to look for is to partner with an experienced insurance agent.
The amount of business insurance you need depends on your company size, industry, and unique risks. If you’re a smaller company with low risk, you can probably opt for a standard coverage limit, like $1 million. However, if you can envision a cyber lawsuit reaching seven figures, you should work with an agent to determine the amount of insurance protection you need.
Cyber insurance is constantly evolving, and so are your coverage needs. Whether you’re new to cyber coverage or ready to reevaluate, here are a few questions to put on your cyber insurance coverage checklist:
- How much would a claim realistically cost, and would my policy cover that amount?
- What’s not covered?
- How and when does coverage kick in?
- What do I have to do to maintain coverage?
- Where am I covered?
- When does my coverage end?
Do I Need Specialized Cyber Insurance for My Industry?
Most cyber insurance policies work well across industries. However, some businesses may need specialized cyber liability coverage to address their risk.
Cyber Insurance for Real Estate Professionals
Real estate professionals handle social security numbers and income information. Because of their increased risk, real estate companies may need a custom cyber insurance policy. If you belong to the National Association of Realtors, you may be able to access exclusive policies designed to cover real estate risks.
Cyber Liability Insurance for Law Firms
Because law firms process a substantial amount of highly confidential information, cyber insurance should play a critical role in their risk management strategy. Some carriers offer proprietary policies for lawyers, so you can feel confident you’re getting the coverage you need.
There are several cybersecurity regulations your business might have to follow, such as the Payment Card Industry Data Security Standard, Cybersecurity Maturity Model Certification, or Health Insurance Portability and Accountability Act. While these standards don’t require your company to purchase cyber insurance, you should buy a policy to protect your business. If you prove compliance with an established regulation, you may be able to get a premium reduction from your carrier.
Finding good cyber insurance isn’t easy, especially as cyberattacks skyrocket. If you want to find the most affordable, comprehensive coverage, you need Southpoint Insurance on your side. Our cyber insurance experts negotiate with the most trusted insurance carriers to secure the perfect combination of coverage for your industry.
Whether you’re a small business or a technology company with extensive risk, Southpoint can help you protect your business against digital threats. Get in touch today to learn more about our business insurance options.