Cyber insurance exists to protect your business from all internet-associated risk. This can include everything from your information technology (IT) setup at work to your information privacy protocols. Cyber-related risks usually fall outside of the protection of commercial general liability policies.
The Cost of Cyber Insurance
The cost of your cyber insurance policy depends on three things:
- The type of business you have
- The amount of credit/debit card transactions you carry out
- How you store sensitive personal information
Ballpark figures are in the region of $1500 for $1 million in liability coverage – with a $10 000 deductible. You’re welcome to contact i4SB, and one of our experienced insurance professionals can give you a more accurate quote.
Cyber insurance is still a relatively new field, and historically, companies exposed to cyber-attacks have downplayed their exposure for fear that the news of a security breach might affect their financial performance. i4SB plays “match-maker” between our customers and the right insurance broker – so rest assured we will connect you with someone who understands the type of cyber insurance that you need for your business.
Types of Cyber Insurance
Depending on the type of business that you have, your cyber insurance policy can specify the type of protection you require:
- Business Interruption: This covers a policyholder who loses business due to data loss – for example, a server crash.
- Computer data loss and restoration and data restoration: These two stipulations cover damage to your computer-related assets, from hardware to software and from security breaches to system failures.
- Reputation Insurance: This covers you against cyber defamation attacks.
- Extortion: Coverage against extortionists who hack into your system and are able to steal sensitive company information. Coverage usually includes the costs of investigating the threats.
- Fraud and Theft: The illegal theft and transfer of funds as a result of a criminal cyber attack are increasingly common, so this type of cover is strongly recommended.
- Network Security: This is a more general cover against hacking attempts.
- Forensic Investigation: Sometimes you may not even be aware that your office system has been infiltrated. An assessment of the potential impact of a cyber attack on your business is covered under the terms of this clause.
In today’s world, having good antivirus software for your office PC is simply not enough to stop cyber terrorists and the lengths they will go to to breach your network, steal your data, and extort money from your business.
It’s a scary digital world out there from phishing scams that can give you viruses and worms that can breach your firewalls. With the help of i4SB though, you don’t need to break into too much of a sweat worrying about it all just yet.
Cyber Insurance’s History
The advent of digital cash in the 1980s heralded the dawn of cyber insurance. Y2K and the 9/11 attacks at the start of the new millennium meant that cyber insurance never quite got out the gates as an industry where established insurance companies felt confident underwriting policies.
For a long time, it remained the domain of medium-sized businesses that needed cyber insurance in order to qualify for tenders or community banks that weren’t quite big enough to hedge the risks of their online banking procedures.
The earliest perceived threats were thought to be resulting from companies that negligently transmitted a virus to another company’s system, causing business interruption – resulting in a lawsuit. This led to first and third-party coverage, though those perceived threats never quite fully materialized as expected.
In some way, the cyber insurance industry remains clouded in mystery because there is not enough solid actuarial data to compute. Companies that have been exposed previously simply don’t want to expose the ‘soft belly’ of their IT system again in the name of accumulating accurate forensic evidence. As the threat of attacks on our cybersecurity systems looms ever larger, there is not a long history of ‘insurance best practice’ for us to look back on.
How i4SB Can Help You
There’s a lot to think about when it comes to selecting the right cyber insurance policy for your business. Like it or not, Information Technology plays an ever-increasing role in most modern companies. Protecting your data is paramount. In the wrong hands, you can lose revenue, reputation, and customers. The chances are that if you store and manage any electronic data online, you need a good cyber insurance policy.
Here we have just provided you with some of the things that you’ll need to think about when considering cyber insurance. Where we have gone the extra mile is with regards to vetting insurance companies and their agents. The people that we recommend are the people that we do business with ourselves.
We know what it’s like to run a small business: it’s time-consuming and energy-draining at the best of times, and so we like to help our clients take some of that load off by “match-making” them with the right insurance company. All our insurance professionals come with years of experience, giving you peace of mind and freeing you up to focus on running your business rather than running around in a panic because you can’t ‘connect to the cloud’, or because a virus has caused your computer to crash.
You can reach out to i4SB via our contact form online or with customer service at 1-505-880-2143. There’s absolutely no obligation to buy any of the products that the insurance companies we match you with are offering – it’s often just helpful to hear what they have to say once you’ve explained your business needs to them. Simply push the Get Started Now button below and let i4SB help you on your way to cyber insurance that suits your pocket and gives you peace of mind.