Small business owners are not exempt from the risk of a cyberattack. The loss of customer data is a financial disaster, and with cyber incursions becoming more common, and hitting even the largest companies, from banks to retails to online giants with extensive security, it is well worth ensuring your business has adequate cyber insurance.
The financial losses a business will experience after a cyber attack are extensive, and include:
Every cyber insurance policy is different – and the differences are found in the small print. Your policy has exclusions that must be fully understood. A full audit of your cyber insurance is a critical aspect of ensuring your business is fully protected. Your business cyber insurance does not cover the losses associated with stolen intellectual property or copyrights.
An insurer may deny a claim if it is found that the policy owner failed to safeguard business data. Most of these policies exclude the losses related to wars, invasions, or insurrections, which are very unlikely events, thankfully. Exclusions for “prior acts” mean that if your business had a breach before the policy was in effect, it is not covered. This poses a problem, as some cyber breaches are not discovered for months after the fact. Always keep your cyber insurance current, and do not allow any lapse, for this reason alone.
When a business has been the victim of a cyberattack, credit card companies may assess fines. Your cyber insurance policy will have limits and deductibles, which should be carefully reviewed. The losses to a business from a cyber breach can be so expensive that an uncovered business may have to close.
The best way to protect your business from the losses of a cyber breach is to work closely with a local agent to select the ideal policy for your business. If you feel your current policy may not provide the coverage you need, your agent can check the market to identify the policy that best suits your business, provides the best coverage, and has the lowest rates.