How to Find a Cyber Insurance Policy for Your Business
With cyber attacks on the rise, it's imperative to protect your organization. Accenture's Cybercrime study found that 43% of small businesses are susceptible to cyberattacks, according to the World Economic Forum.
If your small business stores sensitive personal information on a computer or on the cloud, you should have some type of cyber insurance coverage. It's hard to determine which coverage is right for your business. There are several factors you should consider before settling on just one policy.
What Does Cyber Insurance Coverage Provide?
Cyber insurance coverage covers costs associated with a cyber event. You will typically get back income lost, costs for recovering the lost data, costs for repairs, and the costs for the customers affected by the breach.
This provides your business with a preventative measure against the financial loss involved with the cyber attack. You can customize a cyber coverage package that fits your organization's needs and potential risks.
There are several coverage options available, including betterment, business disruption, crisis management, cyber extortion, forensic investigations, litigation expenses, and regulatory processes.
Factors For Finding Cyber Insurance Coverage
There are many factors you should consider when choosing cyber insurance coverage for your business. While options are available for most organizations, you should consider the following to get the most out of your coverage.
1. Start Searching Early
You want to search for cyber security insurance as soon as possible. The cybersecurity industry is changing on a nearly daily basis. Sometimes, it's good to keep yourself up-to-date on the terminology, changing trends, and threats. You should also read the fine print before signing.
2. Consider Pre-Breach Services
Next, you should consider add-ons such as pre-breach services. Most insurers offer this service for free or at a reduced rate. This service typically includes assessments, policy templates, training, scanning, and vulnerability. Adding this service brings you peace of mind since it reduces your risk.
3. Get Ahead On Security Risks
You also want to get ahead on potential security risks. What are the cyber-attacks that pose a threat to your business? Address these concerns with your insurer before submitting an application.
Insurers offer technology and questionnaires that take an in-depth look at your system. You should tackle these threats ahead of time so they don't become a real threat to your business down the line. This can provide you with some peace of mind knowing that you made the right decision as soon as possible.
4. Hire A Cyber Broker
As a last resort, you may want to consider working with a cyber broker who has professional experience, one who understands which claims and coverage can give you the best plan for your budget. This can save you from a costly mistake and reduce stress in the event that you need to file a claim.
The cybersecurity industry continues to change. There will be even more cyber coverage options to choose from. Make sure that you understand your plan's policy, including what it does and doesn't cover. Starting early and taking advantage of potential threats can reduce your organization's risk.
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