3 Types of Insurance for SMBs

Unless by some extraordinary circumstances you have been able to remove yourself from the 24/7 news cycle, be it by refusing to read national headlines or unfollowing vehemently political friends and family on social media, you're most likely familiar with the term "cybersecurity".

Cybersecurity, or rather the lack thereof, can result in disastrous corporate cyberattacks, just ask Yahoo's CEO Marissa Mayer. Without a stable cybersecurity plan, you will need to use your cyber insurance. Is your company without cyber insurance? This is a problem. Sixty percent of SMBs hit by a cyberattack go out of business just six months later. That's right-small businesses hit by a cybercriminal's weapons do not survive the cyberattack!

To protect your business, you need cyberattack insurance. Alas, cyber insurance isn't the only thing you need to keep your business on the up-and-up.

Here are three types of insurance investments every smart business owner knows they need, to keep their SMB going strong when bad luck strikes.

Cyber Insurance
According to Fox Business, cybercriminals have been increasingly directing their attentions to small business enterprises over the last several years. "Cyber hackers view small businesses as a soft, easy mark versus big blue chip companies which have ramped up their cyber firewalls". Though there have been some discrepancies as to how much a data breach costs companies, Dark Reading reports that the average data breach doesn't exceed $200,000.

Question: Do you have hundreds of thousands of dollars at your disposal to spend on extortion and legal fees? No? This is where cyberattack insurance comes in to help.

Don't worry about cyber insurance costs; it's peanuts next to what a breach can cost your company, especially when it comes to the protection you're receiving in return. Cyber insurance covers the following after a data breach:

  • Data loss
  • Business interruption
  • Cyber extortion
  • Property damage
  • Litigation costs
  • Restitution fees
  • Liability

If a cybercriminal is able to successfully infiltrate your SMB's network, a cyberattack insurance plan will cover the costs after you pay your deductible. Can you imagine paying for all of the above out of pocket?

Property Insurance
Cyber safety isn't all you have to worry about when it comes to protecting your small business. Equipment breakdown, theft and workplace accidents can wreak havoc on your budget. Small business property insurance (available through our parent company) CoverHound covers the repair and replacement costs of your equipment should it be lost, stolen or damaged. Big ticket items that property insurance covers include:

  • Office equipment
  • Vehicle fleet
  • Item inventory
  • Structure of the building

If your business is damaged by an "Act of God" or by an accident committed by you or an employee, property insurance is there to take care of the costs.

Professional Liability Insurance
Not everyone you interact with or offer your products and services to will appreciate your efforts. There will be customers who argue that your product or service left them worse off, physically, mentally or financially, and as a direct result, threaten to sue. Professional liability insurance offers the following coverages:

  • Alleged negligence
  • Claims and damages
  • Litigation costs
  • Restitution fees
  • Personal injury

Professional liability insurance will keep your SMB in business, even when someone is trying to tear it down.

Anything can happen, that's what insurance is for: to ensure that you aren't taken for a wild financial ride. Get your free cyberattack insurance and small business insurance quotes with CyberPolicy and CoverHound today!

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