A recent Small Business Administration (SBA) survey found that 88 percent of small business owners feel vulnerable they will be targeted by cybercriminals. The key to protecting your digital assets is to customize your coverage for specific investments in technology. Here's what you should know about cyber liability insurance for small businesses.
Cyber liability insurance is designed to protect your business from the costs of a cyberattack. If data leaks into the wrong hands, it can be damaging to your company's reputation. It's important to have the right coverage in place when a disaster occurs so that damages are paid for by your insurance policy rather than from your pocket.
Your cyber liability insurance for small businesses covers various disasters involving a cyberattack. Not only does it pay for customer and employee lawsuits that breach the privacy of others, but it also pays for fines, lost income, and ransom to gain control again of your computer network.
Not every type of digital fiasco is covered by cyber liability insurance. It does not cover intentional damage or criminal activity. Nor will it cover cyber disasters if someone at your firm had prior knowledge there would be an attack.
Many types of cyberattacks occur in the business world all the time. Data breaches are among the most common types of attacks, putting confidential information at risk. Computer attacks are more elaborate and involve system penetration to extract private data. Another type of attack is a ransomware attack, in which a hacker freezes up your computers until you pay a ransom amount.
A long list of professions needs cyber liability insurance, as it crosses multiple industries. Essentially, any business operation that relies on a computer network to store and transmit data potentially needs cyber liability coverage. Some of the many professionals that need this coverage include real estate agents, IT services, independent contractors, and marketing firms.
The amount of cyber liability insurance your company needs depends on its size and location. The type of risks your company faces comes into play. The higher the risks, the more coverage you need. A business with multiple risks needs more coverage than a small home operation.
Getting the right cyber liability insurance for small businesses is important in the age of rising cyberattacks. Without it, your company can face expensive lawsuits that drain your company's capital. When you work online, you have a responsibility to protect private data. Contact us today at CF&P Insurance Brokers for more information on data protection.