Cybersecurity insurance is a critical security best-practice for every business, small or large. It’s an added security that allows your business to recover from worst-case-scenario cyberattack events. While every policy and insurance carrier vary, here’s what you need to know about protecting your business with cybersecurity insurance.
What risks can cyber insurance cover?
With cybersecurity insurance, your business is covered from losses up to a certain amount. The specific amount is based on each individual policy, but coverage often includes:
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Data recovery – Was your business’s precious data lost or stolen? A cyber insurance policy usually covers your costs to recover any data damaged or made inaccessible by a cyberattack.
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The cost of informing your clients about the incident – If your customers’ data was released during a cyberattack on your business and you need to notify them, cyber insurance can cover the cost of outreach to let them know.
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Legal costs – Don’t go down without a fight! If a cyberattack on your business results in a violation of privacy or regulatory policies, your insurance policy could cover fines, penalties, and expenses for legal representation.
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Lost income during downtime – Depending on the severity of the attack, your insurance policy may cover the lost income for you and your employees if you had to close your business for weeks or months.
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Repair to technology systems – If your system’s hardware and/or software was damaged as a result of a cyberattack, you could also be covered.
Good to know: What is not usually covered by cyber insurance?
Typically, cybersecurity insurance does NOT cover incidents caused by human error or negligence, such as:
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Lack of employee education
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Insider attacks
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Known risks and vulnerabilities
Disclaimer: You should carefully review any policy exclusions or limitations and understand your coverage.
