Why it is crucial for small businesses to have Cyber Insurance Coverage

The biggest data breaches that generate national headlines typically happen to large and well-known companies. Although, it is small businesses that are more likely to suffer a cyberattack than these large companies. Not only do the world’s biggest companies need Cyber Insurance coverage, but it is also a must-have for small businesses as well.

Every Cost Matters 

Running a small business certainly does not come easy. Owners face intense competition from their competitors who have larger budgets. Unfortunately with the rise of e-commerce, the profit of these small businesses has been affected. On top of that, they have employees to pay, overhead to cover, and following all local business regulations can be costly too. Because of these financial challenges that small business owners face, they are constantly seeking out ways to cut down costs. Fortunately, the cost of cyber insurance coverage remains affordable. The cost of the policy outweighs the costs that follow a cyberattack if your small business was uninsured. 

Advantages of Cyber Insurance coverage for small businesses

There are several advantages to having cyber insurance for a small business to keep in mind. 

Type Description 
Data breach coverage The policy will cover any additional expenses involving identity theft protection, security fixes, and victims of breaches from legal action. 
Reimbursement for business interruption If you happen to suffer from income loss due to a cyber attack, this policy will be able to help. 
Defense against cyber extortion Cyber extortion is very stressful, but you will be able to recoup losses with this insurance policy. 
Legal support You will be able to access professional legal assistance and recover from a cyber attack. 

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Small Business cyber insurance coverage

Every business stores a certain amount of valuable electronic data. The personal information of both employees and customers is vulnerable. With cyber insurance, private information pertaining to employees and customers is protected. In addition, safe money transfers, invoices, and sensitive confidential data are also protected. 

Why it is so important

Technology has truly helped us to live more versatile lives from any corner of the world. Social media, online businesses, software, and online communication have helped both businesses and individuals grow more than ever before. 

However, these same things are also a dangerous gateway to cyberattacks, which could leave behind emotional devastation and financial ruin. It is easier for big global companies to recover, but it takes a huge toll on small businesses.  

Attacks can come from inside sources, criminals, or occasional hackers and everyone is in danger of becoming a victim.  

In order to protect innocent people from falling prey to these criminals, cyber insurance companies have been formed to protect the data and personal information of everyone online. 

Overall, small businesses are more vulnerable to a cyberattack and without cyber insurance, they are unable to recover and often have to file for bankruptcy. That is why it is so crucial to have cyber insurance coverage to protect businesses from the fallout of cyberattacks and hacking threats. 

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The coverage examples described here are hypothetical claim scenarios and are intended to show the types of situations that may result in claims. These scenarios are not based on actual claims and should not be compared to an actual claim. Whether or to what extent a particular loss is covered depends on the facts and circumstances of the loss, the terms and conditions of the policy as issued and applicable law.