Cyberattack Recovery with Data Breach Insurance

Building a small business is no easy task. It takes a lot of hard work to get the idea off the ground, plenty of dedication to push through the tough times and, of course, a whole lot of money. Did you know that 54 percent of small business owners temporarily go without a paycheck at some time during their entrepreneurial career in order to keep their business afloat?

With margins so thin, the last thing you want to deal with is a pricey cyberattack. Thankfully, there are solutions to get you back up and running after a vicious cyber assault or data breach. Get your free personalized cybersecurity insurance quotes by visiting CyberPolicy today. We can pair you with the provider best fit to your needs.

Now, you might be wondering: How can cybersecurity insurance help me?

Well, there are a lot of ways data breach insurance can assist small and medium businesses (SMBs) like yours. The first way is to cover immediate response costs associated with data breach for the policyholder. This is what is known as first-party cyber coverage, and it covers loss of income due to business interruptions, theft, extortion, ransom payments and the ilk.

Third-party cyber coverage, on the other hand, covers the policyholder from claims brought on by customers and clients. This is recommended for businesses that manage a trove of customer or client data. If this data is stolen, customers affected could sue your business for not protecting them from the hacker. Policies of this kind will cover things like credit monitoring, legal fees, settlements, privacy liability and even media liability.

However, it's important to understand that cyber insurance is very different than business insurance, which covers bodily injury to employees or customers, property damage or theft (depending on the plan). Business insurance does not cover cyberattacks, which is why data breach insurance exists in the first place.

Is cybersecurity insurance really necessary?

While there is no legal requirement for cyber insurance, it is still imperative that you invest in your company's cyber resilience. According to Security Magazine, the average recovery cost from an SMB data breach is between $36,000 and $50,000! That's a lot of money to bankroll yourself.

Even more troubling is that only 31 percent of small businesses take active measures to guard themselves against security breaches. With this in mind, it's easy to see how investing in cybersecurity insurance is almost a competitive advantage.

Is there any way to stop cyberattacks for good?

The short answer is no. In truth, cyberattacks are inevitable - which is why it is so important to establish a safety net early on. That being said, there are ways to decrease your chances of becoming a victim by:

− Employing a network firewall
− Investing in antivirus and anti-malware software
− Training your staff to identity and avoid common cyberattacks

Do yourself a favor and invest in data breach insurance as soon as possible. It might be the difference between closing your doors for good or overcoming a pricey cyberattack.

For more information on finding a truly comprehensive cyber protection plan for your business, visit CyberPolicy.

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