https://www.virtual-q.com/wp-content/uploads/2023/07/A-Guide-to-Disaster-Recovery-as-a-Service.jpg 1250 2000 Victor Quinones /wp-content/uploads/2021/06/virtual-q_logo_w.png Victor Quinones2023-07-03 12:49:422024-11-30 14:27:12A Guide to Disaster Recovery as a ServiceDo You Need Cyber Insurance for Your SMB?
According to a National Cybersecurity Alliance study, about 60% of SMBs shut down within six months of experiencing a cyberattack or data breach—which makes cyber insurance coverage valuable for any SMB. Small businesses are one of the most vulnerable targets of cyberattacks because they often don’t invest in cyber protection.
You need cyber insurance coverage if you want to:
- Avoid losing money due to data breaches
- Protect personal and sensitive information
- Recover successfully after experiencing a cyberattack
- Ensure the safety of customer information (credit card info, social security numbers, etc.)
This coverage helps protects SMBs from data and financial losses after experiencing:
- Phishing attacks
- Network hacking
- Ransomware
- Malware
- Cyberattacks
- Data breaches
To better understand which cyber insurance coverage is best for your small or medium-sized company, let’s explore the options available to you.
Cyber Insurance Coverage Options
There are two primary cyber insurance coverage types: liability coverage and first-party coverage.
Internet Liability Insurance
Cyber or internet liability insurance covers the financial and data losses your business experiences after a data breach. This type of cyber insurance coverage helps you pay for:
- The ransom related to your cyberattack
- Legal fees associated with customer and employee lawsuits
- Lost income
- Compliance fines
- Public relations costs, as many companies have to hire a PR team after a data breach to mend their reputation
- Settlement costs
If you store any of the following information, then you need internet liability coverage:
- Customer information
- Credit card numbers
- Social security numbers
- Personal information
- Data on a cloud platform
- Financial records
- Addresses
Storing this information makes you a target for ransomware attacks and data breaches because cybercriminals aim for businesses that manage sensitive data. If you experience a data breach as a small business, customers will likely be frustrated and may take legal action for any of their stolen personal data. That’s why liability coverage is so valuable—it takes the burden of notifying customers and paying legal fees off your shoulders if a breach occurs.
First-Party Coverage
First-party cyber insurance coverage only covers losses directly related to your business. This insurance provides:
- Credit monitoring
- Risk assessments/vulnerability monitoring
- Investigation of the cyberattack/data breach
- Anti-fraud services
- Communication with affected parties
- Risk management/PR solutions
First-party coverage does not cover legal fees or lawsuit actions, making this coverage type ideal for small businesses that don’t store sensitive information or data on a cloud.
What To Look for in Cyber Insurance Coverage
When choosing your cyber insurance coverage, consider the following:
- Does your provider offer legal support? Does your business require legal representation after a data breach?
- What are the notification fees? What’s the cost for public relations support and liability?
- Does your provider offer credit monitoring? If not, consider switching to a provider that does, as this can be a helpful tool for legal liability.
- What are the regulatory requirements and fees?
- How many third-party vendors do you work with? Do you store their information in a database? If so, how secure is that database?
Answering these questions will help you narrow down which type of cyber insurance coverage suits the needs of your business.
Need Help Finding Cyber Insurance Coverage That Suits Your Company’s Needs?
Virtual-Q offers compliance and support services for businesses looking for cyber insurance coverage. With over 12 years of experience and a 95% customer satisfaction rate, we’re equipped with the tools and knowledge to help you find the right cyber insurance.
We offer compliance solutions to ensure your business meets cyber insurance requirements related to your industry. Our expert team understands the complexities of cyber insurance coverage, and we’re prepared to help you find and implement a high-quality policy.
Contact us today to get started.
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