Cyber Insurance 101
With more people working from home and moving to hybrid work models, it is more important than ever to ensure that your business is well-protected from cyber attacks. A key way to protect your business is to invest in cyber insurance.
What is cyber insurance?
Cyber insurance helps your business respond in the event of a cyberattack or data breach. Data breaches are more likely and possible when working remotely. Cyber insurance is most helpful for businesses who deal with sensitive data like lawyers, government officials, healthcare workers, financial advisors, etc. Cyber insurance coverage can vary depending on which provider you work with.
What are the benefits of cyber insurance?
- You’re covered against drastic financial loss
According to a recent report from IBM and the Ponemon Institute, the average cost of a data breach in 2020 was $3.86 million. With cyber insurance, your business will be covered from any loss of income.
- You’re covered against liability
Cyber attacks and data breaches also come with reputational damage. Cyber insurance extends to cover the liability that your business may face if your customers’ sensitive data was involved.
- You’re covered from business interruption
Business interruption is the money you didn’t earn during the time that you were shut down from an attack. This is one of the biggest benefits of cyber insurance because if you are shut down for a long period of time, you have a way of making up for the loss of income your business would have earned if you were up and running as normal.
- You’ll have a team of insurance experts to guide you through the process
Lastly, navigating the aftermath of a cyber attack can be challenging. Choosing an insurance provider with a supportive team that can guide you through the process is a huge benefit.
To learn more about the benefits of cyber insurance, click here.
How much cyber insurance do you need and how much is the cost?
Cyber insurance costs and coverage differ depending on your business. According to Fit Small Business, small businesses that store data but have fewer customers can expect to pay between $700 and $9000 per year.
Here are a few helpful questions to begin with when determining how much coverage you need:
- How much would it cost to replace any affected hardware or software?
- How big of a part does technology play in my day-to-day operations?
- How long would I be out of business should I fall victim to a cyberattack?