Cyber Liability Insurance, Simplified: A Shopper’s Checklist
With cyberattacks increasing, insurance helps reduce liability, meet requirements, and mitigate risk.
Are you worried about cyberattacks on your business? If so, you're not alone. As more and more companies rely on the internet to conduct business, the threat of cybercrime is increasing. That's why many companies are turning to cyber insurance to help protect themselves against cybercriminals.
Cyber-attacks can cause significant financial damage to your business. Cyber insurance can help cover these costs and minimize the impact on your business.
So, what exactly is cyber insurance, and how do you know what you and your business need to be protected? Don’t worry, Wellforce is here to help.
What is Cyber Insurance?
Cyber insurance, also known as cyber liability insurance or cybersecurity insurance, is a type of insurance that helps businesses mitigate the risks associated with cyber-attacks. This type of insurance can cover a wide range of cyber incidents, including data breaches, cyber extortion, and network damage.
Sounds interesting, but we’re a small business. Are we really at risk?
On average, 47.63% of small businesses are hit by cyber-attacks according to data provided by industry experts. The average attack can cost a business up to $200k. Out of the companies that are impacted, nearly 60% of them go out of business within six months.
Cyber-attacks can cause significant financial and reputational damage to your business. The costs associated with data recovery, system repairs, and legal fees can add up quickly. Cyber insurance can help bridge the gap and reduce financial impact.
Okay, we’re convinced. How do we go about determining what coverage we need?
Conducting a risk assessment of your business can help you determine your cyber risk level and the types of coverage you need. A risk assessment involves identifying the potential risks and vulnerabilities in your IT systems and developing a plan to mitigate those risks. By conducting a risk assessment, you can determine the appropriate level of cybersecurity insurance coverage for your business. Let’s go shopping!
When shopping for cybersecurity insurance, it's important to look for a policy that provides comprehensive coverage for your business. This includes coverage for common cyber incidents such as data breaches, network damage, and cyber extortion. You'll also want to make sure that the policy limits, deductibles, and premiums are reasonable and fit within your business budget. In addition, consider policies that offer reputation management services, incident response services, employee training to enhance coverage value.
Cyber Insurance Checklist
- Coverage Types: Make sure you understand the different types of cyber incidents that are covered by your policy. Common types of coverage include data breaches, network damage, and cyber extortion.
- Policy Limits: Check the policy limits to ensure that they are adequate for your business needs. Keep in mind that cyber-attacks can be expensive, and you'll want to make sure you have enough coverage to protect your business.
- Deductibles: Understand the deductibles associated with your policy. This is the amount you'll need to pay before your insurance kicks in. Make sure the deductibles are reasonable and affordable for your business.
- Exclusions: Review the policy exclusions carefully. These are situations that are not covered by your policy. Make sure you understand what is not covered and determine if additional coverage is needed.
- Premiums: Understand the premiums associated with your policy. This is the amount you'll need to pay for your insurance. Make sure the premiums are affordable and fit within your business budget.
- Reputation Management: In the event of a data breach or cyber-attack, reputation damage can be significant. Some cybersecurity insurance policies include reputation management services to help mitigate the damage.
- Incident Response: It is important to understand the incident response services included in your policy. This can include forensic investigation, legal support, and crisis management.
- Employee Training: Some cybersecurity insurance policies offer employee training to help prevent cyber-attacks. Consider policies that offer this additional benefit.
- Vendor Coverage: If your business relies on third-party vendors for services or software, for example Adobe, Citrix, or Nord, make sure your cyber insurance policy includes coverage for vendor-related cyber incidents.
Businesses face a range of cyber threats that can cause significant damage to their operations and reputation. It is crucial that they take proactive steps to protect their data and prevent cyberattacks. This includes a comprehensive cyber liability insurance policy that can help mitigate loss, protect your reputation, and recover your valuable data in the event of a cyber-attack. Understanding what coverage is best for your business can often be the difference between surviving an attack and closing your doors. Be prepared.
Ready to take the first step towards safeguarding your digital assets? Contact Wellforce today! Visit our website at www.wellforceit.com, give us a call at (855)-885-7338, or send an email to firstname.lastname@example.org to discuss your unique needs and explore how we can help secure your organization's future.