What is cyber insurance for small businesses?
Cyber insurance helps small businesses recover from cyber threats, making it easier to bounce back and continue operations.
A cyber insurance policy typically covers
- Data Breaches: If customer or employee information (like names, addresses, or credit card numbers) is stolen, the policy can help cover the costs of notifying those affected, offering credit monitoring, and legal expenses.
- Cyberattacks: If a hacker breaks into your systems and causes damage, the policy might cover the cost of restoring your data and systems and any loss of income if your business is interrupted.
- Ransomware: If a hacker locks your data and demands a ransom, this policy might cover the ransom payment and the cost of getting your data back.
Securing small businesses with cyber coverage
Don’t think you need a cyber insurance policy?
88% of small business owners have felt their business was vulnerable to a cyber attack. Cyber insurance helps small businesses recover from the financial impacts of cyber threats.
Here are some key reasons you should consider buying cyber coverage as a small business owner:
- Increasing Cyber Threats: Cyberattacks are becoming more common, and hackers often see small businesses as easy targets. A cyber insurance policy provides you with a safety net if your business falls victim to an attack.
- Sensitive Data Protection: If your business handles sensitive customer or employee information (like credit card details or personal data), a data breach could be costly. Cyber insurance helps cover the expenses related to notifying affected individuals, offering credit monitoring, and managing legal liabilities
- Cost of Recovery: Recovering from a cyber incident can be expensive. This includes costs like restoring data, repairing systems, and managing business interruptions. Cyber insurance helps cover these costs, reducing the financial burden on your business.
- Compliance and Legal Requirements: Some industries have strict regulations about data protection. If your business fails to meet these standards, you could face fines and legal action. Cyber coverage can help cover these costs and ensure you’re meeting compliance requirements.
- Reputation Management: A cyber incident can harm your business’s reputation. Cyber insurance often includes coverage for public relations efforts to help restore trust with customers and the public.
- Peace of Mind: Knowing that your business is protected against cyber threats allows you to focus on your core operations without constantly worrying about the potential financial impact of a cyberattack.
- Vendor and Partner Requirements: Some vendors, partners, or clients may require you to have cyber insurance as part of their risk management strategies. Having a policy in place can help you maintain and build these business relationships.
Small business insurance without the hassle.
Spending time answering question after question about your business just to obtain the insurance you need is simply a waste of time. That’s why we’ve made this process both seamless and stress-free. Coterie offers cyber coverage for small businesses that can be purchased on a monthly, or annual basis.
Common questions about cyber insurance
Cyber coverage provides financial protection, peace of mind, and can even be a competitive advantage in today’s digital landscape.
Let’s break down some common questions about cyber coverage.
Coterie offers cyber coverage as an endorsement on BOP and GL policies. Agents and brokers can add this coverage under the endorsement tab in Dashboard.
A cyber insurance policy helps assist small businesses with incidents including:
- Expenses related to a privacy breach
- System compromise
- Extortion threads
- Funds transfer fraud
- Payment car industry
- Buisness interruption (optional)
If your business has online or digital operations, you likely need cyber insurance. Additionally, if your business stores or processes sensitive information, including client data, cyber coverage will help your business protect against data breaches and ransomware attacks.
Most businesses in operation today would benefit from the coverage provided by a cyber insurance policy. In particular, businesses that maintain sensitive information like personal identifying information, should consider a cyber insurance policy.
Businesses that may need cyber insurance include retailers, restaurants, real estate agents, hair salons and barbers, consultants, contractors and accountants.
You may depending on what type of data your business stores. If you store credit card numbers, Social Security numbers or banking data, your business may be at work from a data breach or cyber attack.
A professional liability policy doesn’t include protection against claims for loss of data or business records, system compromise and other cyber attacks. To best protect your business, make sure to speak with a licensed insurance professional to understand your risk.
Yes, through our partnership with Cyberscout, a TransUnion Brand, you’ll have access to an online portal of tools including:
- Online business identify vault
- Password manager
- Breach readiness templates
- Self-security assessment to evaluate your business’ risks
- Access to a dedicated resolution specialist to help with identity restoration and protection
- Business mobile app
First, report the claim to Coterie. In the unfortunate event of a breach, our partner will help you develop a breach response strategy and incident management plan.
From there, your Cyberscout breach specialist will help determine the extent of the situation and recommend the next steps. They’ll help you with best practices to respond to a breach and provide case handling. They’ll also handle:
- Breach counseling to help determine whether a breach has occurred and its severity
- Crisis management
- Notification assistance to comply with regulatory requirements
- Remediation services for impacted individuals
- Thorough documentation on any remediation steps
Unfortunately, some coverages may not be available in your state or on your specific policy form. Please speak with your agent to learn more about your coverage options.
