If you own a small business that handles or stores sensitive data, youâ€™re a potential target for cyber attacks. According to the U.S. Small Business Administration (SBA), 88% of businesses like yours may be exposed to such attacks largely for the lack of adequate network security. Having cyber liability insurance for your small business can provide financial protection in the event of a network breach.
What Is Cyber Liability Insurance for SMBs?
Cyber liability covers your company for the cost of a cyber attack on your computer networks and data. It can provide protection if your business handles sensitive customer data like social security numbers, health records, and credit card numbers.
What Does a Cyber Liability Policy Cover?
Cyber liability insurance covers the cost your business incurs following a cyber attack. It can help you recover various expenses, including:
- Data recovery
- Ransom payments
- Data breach investigations
- Customer lawsuits
- Identity recovery
- Public relations/damage control
What Is Excluded in Cyber Liability Coverage?
Typical cyber liability exclusions include:
- Data breach as a result of intentional acts on your part or employeesâ€™
- Business interruption due to third-party cyber breaches
- Criminal lawsuits
- When the data breach occurred on a subsidiary controlled by a third party
What Types of Cyber Attacks Are Covered?
Cyber attacks often include:
- Data breach, theft, or exposure of personal information
- Hacking events/network intrusion
- Cyber extortion or ransomware attacks (criminals demanding payment to allow you back into your computer system)
- Denial of service attacks
Who Needs Cyber Liability Insurance?
Cyber liability for small businesses is essential for any enterprise that processes or keeps sensitive information belonging to entities like customers or business partners. Companies/contractors in the following industries/sectors should consider investing in the policy:
- Information technology (IT)
- Real estate
- Retail/store owners
How Much Cyber Liability Insurance Should I Purchase?
Your cyber insurance needs will depend on whether your business deals with sensitive data, personally identifiable information, or protected data such as personal health information. Your insurance agent can help you determine your specific coverage needs.
What Is the Cost of Cyber Liability Insurance?
The median premium is roughly $140 a month. However, the exact cost of cyber liability insurance for small business owners can vary by factors such as your companyâ€™s:
- Claims history
- Computer system security
- Cyber risk
Whatâ€™s the Major Difference Between Data Breach Coverage Vs. Cyber Liability Insurance?
Data breach coverage limits your protection from the loss of sensitive financial data. You can add business income insurance to include lost income coverage after a data breach. Cyber liability insurance provides broader protection for cyber attack damages.
Differences Between Cyber Liability Insurance and Technology Errors and Omissions Insurance
Technology E&O insurance is a professional liability policy for damages caused by defects or failure in your technology services or solutions. Cyber liability insurance protects your business in case of a cyber attack on its IT systems.
Cover Your Small Business Against Cyber Liabilities with CAV Insurance Agency
To get specific answers regarding cyber liability insurance for small businesses, contact our expert agents at CAV Insurance Agency. We will be happy to assist you in obtaining the right coverage for your company.