Make Sure Your Cyber Insurance Coverage Has These Factors to Be Sure You're Getting the Best Protection
Cyber insurance is quickly becoming one of the more important policies that a business needs to have. Cyberattacks can impact anyone, from small businesses to large corporations, as technology is constantly updating and changing in our work lives, it’s key that your business has the proper protection ready. With our cyber insurance coverage checklist, you’ll be able to make sure that your policy has everything your business needs to be safe from attacks, hackers, and data breaches.
Times have changed since insurance policies were first created, and cyber insurance covers what traditional liability policies were never designed to handle. For many businesses, technology is critical in order to function on a daily basis. From the devices employees use to the website your customers interact with, the digital world touches almost every aspect of our daily work lives.
On any given day your employees are storing private information in your organization’s cloud, your business is collecting contact information from potential customers, you’re gathering sensitive information from clients, storing important financial documents, and more.
All of this information can be taken and manipulated through a cyberattack. If you don’t think it can happen to you, think again. Attacks can happen at any level in any industry. Big corporations aren’t necessarily the main targets anymore. In fact, small businesses are often the most vulnerable and it could be because they’re also the least likely to have cyber insurance. For a small business, a cyberattack has the potential to take down the whole company if they don’t have protection in place to cover the damages and deal with the repercussions that come with an attack.
Cyberattacks can result in money loss, stolen information, and a ruined reputation. An attack easily throws your business off track and can seriously damage your customer relationships — all without ever knowing who did it.
Cyber insurance typically falls into two categories: first-party and third-party liability. First-party liability refers to the coverage of damage done directly to your business. This includes things like loss of revenue, public relations expenses, data replacement and system rectification. Third-party liability covers things your business is liable to pay for, including things such as infringement, failure to prevent virus transmission, defamation, and negligent internet content.
How much cyber insurance do you need? The best answer is as much as possible. Even major corporations who had millions in cyber insurance still suffer from the costs of cyberattacks. The more you have the better, and if possible, add a little more. When it comes to finding the right policy for your business, we’ve put together a cyber insurance coverage checklist detailing what you’ll want to look for and pay attention to when you talk to an insurance advisor.
Follow This Cyber Insurance Coverage Checklist to Make Sure Your Business Purchases the Best Coverage
If you want to have the best possible cyber insurance coverage, this checklist will make sure you’re prepared to find what’s going to work best for your business by looking into the basics of what cyberattacks affect.
- Laptop Insurance - if your employees use laptops in any way, you’ll want to have coverage on them as property in the event of a virus or data breach on their computer
- Data Breach - this is when your sensitive, confidential, or private data is viewed or stolen. You’ll want to have this in your policy to help prevent major loss to your business from third-party losses
- Lost or Stolen Data - Similar to a breach, this will cover the costs associated with restoring your data
- Third-Party Losses - as mentioned before, you’ll want to make sure you have coverage towards anything your business may be liable for in the event of an attack
- Network Security Coverage - this applies to losses directly felt by your network security, including breaches, data restoration, theft or tampering, and business interruptions
- Business Interruptions - the loss of income a business may suffer after a cyberattack should be included in your policy
- Media Liability - your content, photos, videos, and any other forms of media will need coverage in the event that they’re stolen in a cyberattack
- Cyber Extortion and Terrorism - this will make sure your business is covered in the event of threats, violence, or demands for ransom where you sensitive data is the hostage
- Litigation - in the event that your business has to testify on a cyberattack that occurred against you, or you have to defend yourself following a breach of your data
- Public Relations Fees - this will cover any costs put towards a public relations crisis management effort to repair your business’s relationship with the community
- Forensics - this will cover costs of the investigation into how, why, when, and where a cyberattack occurred
With this cyber insurance coverage checklist, your business will be able to determine the best comprehensive policy to ensure that you’re protected from cyberattacks. Having this coverage in place could be your business’s saving grace if your network is compromised.
About the author
Matthew T. Simon, CIC, CPCU
Since 2006, Matt has been a Licensed Insurance Advisor with Hill & Hamilton Insurance, an industry leading, independent insurance agency headquartered in Ohio. Prior to joining the team at H&H, he worked as an Underwriter with a regional insurance company located in Columbus, Ohio.
Matt is a Certified Insurance Counselor (CIC) and a Chartered Property & Casualty Underwriter (CPCU), having successfully completed the rigorous coursework and exams to earn these prestigious designations.
He’s the Vice President at H&H, serves on the Board of Directors for the Ohio Insurance Agents Association of Ohio and the Associated Risk Managers of Ohio. In 2013, Matt was awarded and recognized as the National Young Insurance Agent of the Year.