Cyber Insurance

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Cyber Insurance Quotes

Protect Your Business from Cyber Attacks

If you manage or collect your customer’s personal information, then you already know that state and federal laws regarding the loss, theft, or possible compromise of personal data can create a costly obligation. The size of your potential loss is correlated to the number of customers you have in your system.

Cyber breaches continue to be a concern for business owners as the sophistication and reliance on Internet technology increases faster than ever before. Not only do you have to consider internal risks such as a malcontent or negligent employee, but also bad actors that may attempt to take advantage of security flaws in your network; hardware; software; or honest, but unaware employees. According to Ponemon’s 2014 benchmark study, the average cost for each lost or stolen record containing sensitive and confidential information increased from $188 in the previous year to $201. In a cybersecurity insurance workshop, The Department of Homeland Security (DHS) identified at least 3 ways to prepare for cyber risks:

1. Risk Acceptance: An example would be setting aside an amount equal to an expected cyber liability event.

2. Risk mitigation: Using many recommended and tested security practices; companies can prevent or at least lessen the cost posed by cyber liabilities.

3. Transfer of Risk: A cyber insurance policy can help transfer all or some of your technology-related risks to an insurer.

What Risks Are Covered By Cyber Liability Insurance?

A cyber insurance policy is generally a package of coverage that includes protection for multiple risks. Ask your insurance professional about any liability coverage below:

Data Breach Liability
Protection from damages suffered by your clients due to unintended release of private information
Security Breach Liability
Protection from damages suffered by your clients due to network security failures
Regulatory Defense Expense
Assists businesses lower the cost of complying with state and/or federal laws regarding breach notifications
Data Breach Expense
Helps pay for potential third-party costs related to identifying and preventing breaches.
Cyber Extortion Threat Expense
Covers the expense of paying extortions to unlock your data or website.
Reputational Damage
Find assistance fixing your relationship with clients who may worry about working with your business in the future due to security issues.

Potential Cyber Liability Insurance Requirements

Many insurers will request certain practices are implemented to ensure cyber risks are decreased for both your business and the insurer. Insurers may ask your business to implement the following:

Designate a Chief Security Officer to oversee the firms cybersecurity.
Implement a cybersecurity policy (Get a free FCC cybersecurity policy planner for small business)
Apply a firewall to your network and control remote access through VPN
Install anti-virus on all of your firm’s machines
Use intrusion detection software to prevent unauthorized access

Cyber Insurance Exclusions

Cyber Insurance generally does not cover systemic risks. Exclusions include widespread hardware/ software issues and acts of war. For instance, security events like the Y2K bug of 1999 and any act of cyber warfare between nations. Other exclusions will apply and you should check your policy to see which risks are not covered.

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Frequently Asked Questions (FAQs)

Get clear answers to common insurance questions and important details to guide your coverage decisions.

What is Cyber Insurance?

Cyber Insurance protects businesses against financial losses caused by cyberattacks, including data breaches, ransomware, and other security incidents. It covers expenses related to data recovery, legal fees, business interruption, and third-party claims from customers or regulatory fines.

Who needs Cyber Insurance?

Any business that handles sensitive data, such as customer information, payment card details, or health records, should consider Cyber Insurance. This includes businesses across various industries that use email, websites, or other internet services, as well as companies providing IT services.

What does Cyber Insurance cover?

Cyber Insurance policies offer first-party coverage for direct costs like data loss, business interruption, and cyber extortion, as well as third-party coverage for legal defense, regulatory fines, and claims from affected customers. Coverage often includes incident response services like forensic investigations, public relations, and customer notification costs.

What is not covered by Cyber Insurance?

Common exclusions include damages from war, intentional acts, breaches of contract, theft of trade secrets, and fines for illegal acts. Additionally, losses from poor security practices or violations of policy terms may not be covered.

How much does Cyber Insurance cost?

Costs vary based on factors like business size, industry, and cyber risk profile. On average, small businesses may pay between $500 to $5,000 per year, but premiums can be higher depending on coverage limits and security posture.

Can I reduce my Cyber Insurance premiums?

You can reduce premiums by demonstrating strong cybersecurity measures such as multifactor authentication, patch management, employee training, and maintaining a detailed incident response plan. Insurers often reward businesses with robust security practices by offering lower premiums.

How can I choose the right Cyber Insurance policy?

To select the right policy, assess your business’s specific cyber risks and coverage needs. Consult with an experienced insurance broker to tailor the policy to your business, ensuring it includes comprehensive first-party and third-party coverage. Regularly review and update the policy as your business evolves.