If you have the theme song from Mission Impossible in your head right now, don’t worry. You’re not the only one that happens to whenever they hear the words “cyber insurance.”
Just a few short years ago businesses didn’t give a second thought to having a cyber insurance policy, and most of those didn’t even know what it was supposed to do.
Nowadays, the impact of having a cyber insurance policy couldn’t be more apparent. Nearly every company from small to large, global to your local mom and pop shop has a cyber risk, and now you hear about hacks or data breaches almost daily .
So what is Cyber Insurance and what does it cover?
Cyber insurance can be a stand alone insurance product (or in most cases, be added into your business owners policy) that can protect your business in the event of a data breach. Generally speaking, cyber insurance can provide cover for financial losses suffered by your business as a result of a cyber incident.
This can include business interruption (loss of profits, extra expense, subsequent reputational harm and claim preparation costs) from computer system downtime, as well as the cost of regulatory investigations and fines.
Does my company need Cyber Insurance?
Like with any insurance coverage you decide to purchase, whether or not your company needs cyber insurance is on you as the owner.
As an insurance advisor, my advice is this. If you take credit card payments, do any business online, or have a virtual customer book you need to have some sort of cyber insurance in place. In addition businesses that solely conduct sales online can benefit from cyber insurance, since downtime related to cyber incidents can cause a loss in sales and customers. Similarly, any business that stores customer information on a website can benefit from the liability coverage that cyber insurance policies provide.
What kind of costs am I looking at?
Again, generally speaking cyber policies typically run around $1500 a year for a million dollars coverage with a $10,000 deductible. In some cases, lower levels of coverage can be added into your already existing Business Owners Policy.
Is it worth the costs?
The short answer is yes; the immediate costs of a data breach are significant, and the latent costs can be devastating. Cyber liability insurance offers several mitigation measures and high limits to cover the costs of a breach.
Want to know more about cyber insurance, or ready to start a quote? Click here or give us a call at 229-430-9107!