Imagine you're answering emails, talking with customers, and managing your business' daily tasks. Then, you get a strange email. The sender says they've hacked into your systems and stolen your customers' information. They demand a hefty ransom to give it back. As they hold your business hostage, your entire livelihood is at risk.
This is what's called a cyber attack.
In 2024, data compromises in the U.S. affected 1.35 billion individuals. Cyber attacks don't hit just big businesses like Target or Home Depot. Small businesses are often targets too. Even with defenses, your business can face a data breach or cyberattack. What can you do to reduce the risks and impact? A cyber liability insurance policy can help you feel secure about your business' protection.
What is Cyber Liability Insurance?
Cyber liability insurance protects your business from cyber attacks, threats, and data breaches. Are you worried about stolen credit card numbers or account information? Small business cyber liability insurance is there to help. It may cover costs to fix your systems, tell your customers what happened, and protect your business’s reputation.
Types of Risks
Cyber liability insurance protects your business in two ways: first-party coverage (your business) and third-party coverage (your customers or clients).
Internal/First-Party Coverage:
- Recovery of stolen information or data
- Income replacement due to business interruption
- Identity theft
- Cyber extortion and fraud
- Regulatory Fines
- Investigative services
- Reputation & Customer communications, including crisis management and public relations
External/Third-Party Coverage:
- Recovery of stolen information or data
- Customer payments or lawsuit coverage
- Lawsuit settlements
- Reputation & Customer communications, including crisis management and public relations
- Accounting costs
How can you prevent cyber risks?
The cost of cybercrime is expected to reach $1.82 trillion by 2028. As threats continue to grow, protecting your business is even more important. Besides finding the right cyber insurance policy, you can take these extra precautions:
- Hire an IT security partner
- Install security software and hardware on company computers
- Use a cloud to store your company information
- Secure your Wi-Fi network
- Limit employee access to data and information
- Tracks passwords and authentication
Ready to protect your business? Contact a Mulling Insurance agent today!