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Cyber Insurance

Cyber Insurance Coverage For Small Businesses

B2Z Offers Cyber Insurance

Cyber insurance is an optional coverage designed to help small businesses pay for losses associated with data breaches, malicious hacking, ransomware, and cyberattacks. Following a cyber event, a small business may be responsible for making customer notifications and offering fraud monitoring costs, as well as legal fees and system damage repairs. Cyber coverage can assist with those related costs. Do you need this coverage for your small business? What does Cyber insurance typically cover or not cover? We’ve done the research for you below.

What You Need to Know About Cyber Insurance

  1. Q
    What is Cyber Insurance?
    A

    Cyber insurance typically covers costs associated with a data breach, system hacking, or other malicious attacks on the business network. Such cyber events may put customer and business data at risk; and the costs to contain the damage and repair the systems, as well as resulting customer notification and fraud monitoring, may be prohibitive for a small business.

  2. Q
    Why do I need Cyber Insurance for my small business?
    A

    On average, the cost of a data breach for a small business is between $36,000 and $50,000. However, a business that experiences a cyber attack could pay upwards of $200,000—and some cyber event costs reach into the millions of dollars. The costs related to containing and repairing the system damages, coupled with the costs to communicate and address customer fraud and damage claims, can be crippling to a small business. Securing coverage for cyber attacks can help small businesses cover the resulting costs in terms of liability and damages.

  3. Q
    How does Cyber Insurance work?
    A

    After you secure your cyber insurance coverage, you pay a monthly or annual premium based on your chosen annual limit and business details. Your policy documents are the legal contract between your small business and the insurance company. While your policy is in force, the insurance company agrees to pay claims and associated expenses stipulated by the policy.

  4. Q
    What does a Cyber Insurance policy typically cover?
    A

    Typically, cyber insurance covers losses and liabilities related to cyber attacks, including customer communication and fraud monitoring, and damages to your computer systems and data.

Because You Can Never Have TMI (Too Much Information) When It Comes to Insurance

Does your small business collect customer information? Everything from protected personal information (PPI) to credit card and payment information can be put at risk by a cyber attack. Data breaches don’t just impact your business, they impact your customers too. Cyber insurance coverage is designed to help with the costly aftermath of a data breach, ransomware, or other cyber attack.

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A few reasons to consider Cyber Insurance insurance for your small business.

These statistics show small businesses are at risk for cyber attacks, breaches or other malicious hacking events:

Cyber Attacks. 88% of small business owners felt their business was vulnerable to a cyber attack; and it could cost anywhere from $200,000 to $7.68 million per incident to resolve such attacks, forcing many small businesses to close.

System & Data Breaches. 63% of small businesses reported experiencing a data breach within a 12-month period. 83% of all data breaches are financially motivated.

Ransom & Extortion. 43% of small businesses have identified as being the target of a ransomware attack. The average ransom requested by threat actors is between $10,000 and $50,000.

Phishing Threats. More than 30% of small businesses are targeted by phishing scams and can cause upwards of 16 hours of downtime.

Forensic & Legal. Forensic investigations including vulnerability assessment can cost on average between $10,000 and $30,000, and may involve additional lawsuits if you are found to have violated a regulation.

 

What’s Typically Covered by a Cyber Insurance

Cyber Insurance typically covers expenses related to cyber attacks, data breaches, and other malicious hacking events targeting your business.

  • Restoring and recreating lost data
  • Restoring a computer system to its pre-attack status
  • Lost business and extra expenses related to cyber attacks
  • Professional PR firm services to communicate your response to cyber attacks
  • Forensic IT services to investigate potential data breaches
  • Notification services that identify and notify potential victims
  • Personal services for those affected
  • Professional PR firm services to communicate your response to data compromises
  • Most related legal review and defense costs