You must have heard of a data breach and cyber-attacks, right? There has been a growing occurrence of cyber-attacks on various businesses especially in the United States of America which has amounted to the loss of billions of dollars annually.
The truth is every business with job descriptions that touch the use and handling of data can come under the radar of possible cyber-attacks and data breaches.
Fortunately, there is insurance coverage that covers and protects businesses from the adverse impact of a data breach. This insurance policy is called cyber liability insurance coverage.
What is Cyber Liability Insurance?
Cyber liability insurance is an insurance policy that protects users of tech services and products. It was designed to provide coverage for liability and property losses that may arise as a business that performs online transactions or collects data within the perimeter of the internet.
Any business that is involved in any form of a transaction involving a connection with the internet or the handling of sensitive and personal consumer data should get a cyber liability insurance cover as such a business will be the target of hackers and cybercriminals.
On average, a company in the United States loses $8.19 million due to data breaches. Should your small business suffer a loss of this magnitude without insurance, would it survive? I bet the answer is no.
You may say your business is small and its size will deter cybercriminals from attacking it. I hate to dash your hopes but your small business is the perfect pitch for cyber data breaches.
In recent times, studies show that small businesses around the world have suffered more data breaches than big organizations and corporations have.
So, if you were thinking of not getting cyber liability insurance because you run a small business, then think again.
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How Much Does Cyber Liability Insurance Cost?
After making up your mind to get a cyber liability insurance policy for your small business, the question that comes up almost immediately is, how much does a cyber liability insurance policy cost?
Not to worry, we have gathered sufficient information to provide a credible answer to this question.
The cost of a cyber liability insurance policy depends on a number of underwriting factors which the insurance provider considers upon reviewing your business and its potential risks.
Cyber liability insurance cost depend on the following factors:
- Your business type
- The kind of data and information you work with.
- Implemented security system
- The number of hardware or devices you work with.
- The number of transactions you carry out.
- Age of your business
- Annual revenue
These factors will be taken into consideration by your insurance provider. Deductions from these factors as they relate to your business will inform the insurance provider’s proposition of the manner of cyber insurance that suits your business while taking any other preference from you into consideration.
Typically, the cost of cyber liability insurance for a small business is between the $750 to $8,000 range, depending on what is proposed by your insurance provider. Just have that price range in mind as you get your cyber liability insurance quotes.
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What a Cyber Liability Insurance Policy Covers?
Another question that would certainly pop up as regards how to get cyber liability insurance for small businesses is, what does a cyber liability insurance policy cover for?
If you are still wondering whether your business sector actually needs cyber insurance here is a list of what a comprehensive cyber liability insurance will cover for:
- Legal costs
- Fines from regulatory bodies
- Consumer loss
- Business Interruption
- Direct financial loss
- Public relations to regain tarnished brand image.
Industries That Need Cyber Liability Insurance Coverage
Lack of cyber insurance coverage is a big risk. So, if you are asking if your business needs cyber liability insurance and how it works, then we’ve got a list of business sectors that need it most and how to get the best cyber insurance quotes in the United States, the UK, Canada and even Australia.
Below are the industries in dire need of cyber liability insurance coverage. If your business is in any one of these industries, as a top priority, get a cyber liability insurance cover today.
- Insurance services
- Online stores/E-commerce
- Online services companies
- Technology services
- Financial services
Before you mark your business safe from cyber-attacks and data breaches, answer these questions: Is your business connected to the internet? Do you collect your customers’ data in any form?
If the answer to any of these questions is yes, then you are not safe from hackers and cyber criminals.
Every business connected to the internet is automatically at risk of a data breach or cyber attack hence it is unwise for that business to treat the issue of getting cyber insurance casually no matter how expensive it is. You can still get the best quotes.
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Why Do These Business Sectors Need Cyber Liability Insurance Coverage?
Why is it so important for the aforementioned industries to get cyber liability insurance coverage?
A shocking statistic puts the Healthcare industry as the foremost industry in the number of losses from data breaches annually. It is estimated that the U.S. healthcare sector losses US $6.2 billion due to data breaches.
These are some of the reasons why these industries need cyber liability insurance:
- As technological advancements are recorded, cyber crimes and criminals are gaining momentum.
- Customer data are the targets of data breaches
- The loss your business may incur from a data breach can lead to the closure of your business.
- Legal fees from lawsuits filed by affected customers can be overwhelming
- Cost of an investigation after a data breach
- Business insurance coverage does not come with a cyber insurance provision
- Effective risk management
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There is no telling when your business may suffer from a cyber attack. If your business collects and stores customer’s data, connects to and operates from the internet and falls within the healthcare, online stores, online services, technology, insurance, and financial services, then it will be in your best interest to get cyber liability insurance coverage today. Contact an insurance broker and get the process started.
In subsequent articles, we will talk about the various insurance companies that have the best cyber insurance quotes.