You must have heard of a hack and cyberattacks, right? There has been a growing incidence of cyberattacks on various companies, especially in the United States, which has resulted in the loss of billions of dollars annually.
The truth is that all companies with job descriptions that concern the use and handling of data can come under the radar for possible cyber attacks and data breaches.
Fortunately, there is insurance coverage that covers and protects companies from the negative effects of a data breach. This insurance is called cyber liability insurance.
What is cyber liability insurance?
Cyber liability insurance is an insurance that protects users of technical services and products. It was designed to provide coverage for liability and property losses that may arise as a company that performs transactions online or collects data on the Internet.
All companies involved in any form of transaction involving an Internet connection or the handling of sensitive and personal consumer data should be covered by cyber liability insurance as such a company will be the target of hackers and cybercriminals.
On average, a company in the United States loses $ 8.1
You can say that your business is small and its size will deter cybercriminals from attacking it. I hate to deepen your hopes but your small business is the perfect pitch for cyber data violations.
In recent times, studies have shown that small businesses around the world have suffered more data breaches than large organizations and companies have done.
So if you thought about not getting a cyber liability insurance because you run a small business, think again.
How much does cyber liability insurance cost?
After thinking about getting a cyber liability insurance for your small business, the question that comes up almost immediately is, how much does a cyber liability insurance cost?
In order not to worry, we have gathered enough information to provide a credible answer to this question.
The cost of a cyber liability insurance depends on a number of insurance factors that the insurance provider considers when reviewing your business and its potential risks.
Cyber liability insurance costs depend on the following factors:
- Your business type
- The type of data and information you work with.
- Implemented security system
- The number of hardware or devices you are working with.
- The number of transactions you perform.
- Age of your business
- Annual income
These factors will be taken into account by your insurer. Deductions from these factors regarding your business will inform the insurance provider's suggestions on the manner of cyber insurance that suits your business while taking into account other preferences from you.
Typically, the cost of a small business cyber liability insurance is between $ 750 and $ 8000, depending on what is suggested by your insurance provider. Just think of that price range when you get your quotes for cyber liability insurance.
What is a cyber liability insurance?
Another question that would surely arise when it comes to getting cyber liability insurance for small businesses is, what does a cyber liability insurance cover?
If you are still wondering if your business sector really 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
- PR to regain weakened brand image.
Industries in need of cyber liability insurance
Lack of cyber insurance is a major risk. So if you are asking if your business needs cyber liability insurance and how it works, we have a list of business sectors that need it the most and how to get the best quote on internet insurance in the US, UK, Canada and even Australia.
Below are the industries that are in great need of protection against cyber liability. If your business is in any of these industries, as a top priority, get protection from cyber liability today.
- Insurance Services
- Online Stores / E-Commerce
- Online Service Companies
- Technical Services
- Financial Services
Before branding your business secure against cyberattacks and hacking, answer these questions: Are 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, you are not safe from hackers and cybercriminals.
Every company that is connected to the internet automatically risks a data breach or cyber attack, so it is unwise for that company to deal with the issue of getting cyber insurance relaxed no matter how expensive it is. You can still get the best deal.
Why do these business sectors need cyber liability insurance coverage?
Why is it so important for the mentioned industries to get cyber liability insurance coverage?
A shocking statistic puts the healthcare industry as the leading industry in the number of losses from data breaches annually. It is estimated that the US healthcare sector is losing $ 6.2 billion due to data breaches.
These are some of the reasons why these industries need cyber liability insurance:
- When technological advances are recorded, cybercrime and criminals gain momentum.
- Customer data is the target of data breaches
- The loss that your company may suffer from a data breach may lead to the closure of your company.
- Legal fees from litigation affected by affected clients can be overwhelming
- Cost of an investigation following a data breach
- Insurance coverage is not covered by a cyber insurance provision
- Effective risk management
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There is nothing to know when your business may be hit by a cyberattack. If your company collects and stores customer information, connects to and operates from the internet and falls into healthcare, online stores, online services, technology, insurance and financial services, it will be in your best interest to be protected from cyber liability today. Contact an insurance broker and start the process.
In the following articles we will talk about the different insurance companies that have the best quote on internet insurance.