Recovering from a cyber attack can be costly. But there are many resources to educate you and protect you from the threat and the harm of a cyber security attack. The Federal Trade Commission (FTC) is a good resource for advice. Here are some of their tips on Cyber Insurance protection for small businesses.
Cyber insurance for small businesses can help protect you against the financial losses that can result from a cyber attack. When choosing a cyber insurance policy, you should make sure it covers data breaches. it should also cover cyber attacks on your data held by vendors. And think globally. It should protect you from cyber attacks that occur anywhere in the world. You should also consider whether the policy will defend you in a lawsuit or regulatory investigation. Also, will it provide coverage in excess of any other applicable insurance you have? Lastly, think of the customer and the need to communicate with them effectively. Will your coverage offer a breach hotline?
First-party Coverage
First-party cyber insurance coverage protects your data, including employee and customer information. This coverage typically includes the costs of legal counsel, recovery and replacement of lost or stolen data, customer notification, lost income due to business interruption, crisis management, cyber extortion and fraud, forensic services, and fees and penalties related to the cyber incident.
Third-party Coverage
Third-party cyber insurance coverage generally protects you from liability if a third party brings claims against you. This coverage typically includes payments to consumers affected by the breach, claims, and settlement expenses relating to disputes or lawsuits, losses related to defamation and copyright or trademark infringement, costs for litigation and responding to regulatory inquiries, other settlements, damages, and judgments, and accounting costs.
It is important to discuss your cyber insurance needs with an insurance agent to find a policy that is right for your business.
Here are some additional tips for choosing a small business cyber insurance policy:
- Get quotes from several different insurers.
- Read the policy carefully to understand the coverage and exclusions.
- Make sure the policy has a high enough deductible to make it affordable.
- Consider getting a policy with a claims-made trigger, which means that the policy will only cover claims that are made during the policy period.
- Get help from an insurance broker who specializes in cyber insurance.
Source: Federal Trade Commission
Resources: www.insureuonline.org/smallbusiness
More Cyber Insurance News: Cyber Insurance And Quantum Computing – The New Risk