How Cyber Security Insurance Works

A cyber security insurance policy can help small businesses take control of their digital security, protect their data, and reduce financial exposure. With hackers increasing their attacks on enterprises big and small, cyber insurance is necessary for any company that:

  • Accepts credit cards and digital payment
  • Stores confidential, medical, or financial data
  • Uses computers and mobile devices in and out of the office     

What is a Cyber Security Insurance Policy?

Cyber security liability insurance protects businesses against targeted malware and phishing attacks, stolen hardware and devices containing confidential material, network exposures, cyber extortion, and cloud data breaches.

Cyber insurance agreements typically include coverage for network security, privacy, business interruption, media liability, and errors or omissions that lead to loss.

Your policy can provide money for:

  • Breach response resources following an attack
  • Digital media upgrades to resolve defamation, copyright infringement, and privacy invasion claims
  • Forensic costs to identify data breach source and scope
  • Legal defense against privacy lawsuits and regulatory fines
  • Lost business revenue due to post-hacking downtime (“business interruption insurance”)
  • Notification costs and credit protection services for breach victims
  • Phishing money lost due to fraudulent third-party transactions
  • Privacy protection to defend against legal claims
  • Public relations and media expenses
  • Ransom costs to retrieve stolen data
  • Repairs to destroyed data and software (“data recovery”)
  • Social engineering losses

What is Not Covered by Cyber Security Insurance?

Not everything is covered, no matter how good your cyber security insurance policy is. Criminal investigations and grand jury proceedings are not covered. All funds transfers, such as those related to loss, or intentional transfer, may not be covered.

Claims from interruption of water, gas, or electric are not covered, nor are intentional acts of criminal conduct among employees. Subsidiary and third-party losses are generally not covered unless they have their own policies.

Why You Should Absolutely Get Cyber Insurance This Year

Cyber insurance is necessary for a number of reasons:

  • To protect your data against criminals and hackers.
  • To protect your business entity with regulatory compliance.
  • To protect partners and subsidiaries with best-practice security.
  • To protect your customers and suppliers from service disruptions due to security breaches.
  • To protect investors and stakeholders against the uncertainty of legal claims and government penalties.

Insurance gives you a pool of money to deal with privacy, data protection, legal, and technical costs associated with cyber security incidents. They have become so frequent that it’s a question of “when,” not “if.” Monitoring, training, and responding is imperative if you wish to conduct business in the modern era.

Learn More About Cyber Insurance Cost, Maintenance, and Value

Questions about cyber insurance cost? Contact Coronet. Our commitment is to small and medium-sized businesses who feel insurance is out of their budget and reach.  

Every company should be able to afford protection from bad actors, fraud, and cyber security threats. Call us for details or sign up for the free trial today.