The Quick Guide to Selecting a Cyber Insurance Provider

They say there are two ways of taking a hint: the easy way and the hard way. The easy way is learned from the examples of others. The hard way is lessons learned through experience; typically, negative in nature.

While some life lessons are best learned through experience, others should be avoided. Missteps regarding your company's cybersecurity are a perfect example of the latter.

Data breaches, cyberattacks, and hacker scams hurt businesses big time. This is especially true for small and startup business lacking the resources needed to combat digital threats.

This is why SMBs seek cyber liability insurance quotes from reputable providers. Cyber liability insurance is similar to business insurance, except it protects your digital assets. It is very affordable – even for small businesses – and may be the saving grace for companies victimized by hackers.

But how do you know which cyber insurance provider to choose?

Here's a quick guide to selecting the right cyber liability insurance provider.

Find Out What the Policy Covers

'General' (for lack of a better term) cyber liability insurance covers business losses due to downtime, notification outreach, forensic investigation, and extortion fees. In real life, the situation could look like this:

You arrive at work on a Monday morning—coffee in hand. When you turn on your desktop computer to check your emails, you see your device is locked by ransomware instead. Paying an extortion fee is the only way to remove it. If you have cyber liability insurance, your provider will cover the ransom, reimburse you for lost revenue, and inspect your network for signs of tampering.

Every policy is a little different. So, be sure to ask lots of questions. You want to be certain your provider is primed for your unique needs.

Does the Provider Offer Third-Party Coverage?

One of the trickiest parts of cybersecurity is that it's sometimes out of your control. You can always make little improvements to shore up your defenses. Among these are implementing stronger password protocols, keeping software up to date, and eliminating shadow IT. But these do little to combat attacks on your third-party partners.

According to a recent survey, 63 percent of all data breaches are attributed to a third party. Cybercriminals don't need to hack your business to cause you harm. They can hack your vendors and partners and achieve the same result.

This is where third-party cyber liability coverage comes into play. Policies of this ilk extend beyond your organization to cover data breaches and cyberattacks affecting your business. Keep in mind; this policy option isn't for everyone. But it is a must-have for any company sharing sensitive data with external partners.

Find a Provider Who Is Also a Partner

Any insurance provider can sell you a policy. That's the easy part. But what really sets some providers apart is their willingness to advise you regarding cybersecurity matters. Active partners in your fight against cybercrime, security partners examine your network and provide you with recommendations for improvement. Together, you can make the World Wide Web a safer place for your company, your employees, your customers, and all users. Looking for a free cyber liability insurance quote? CyberPolicy is here to help!

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