Cyber liability is a form of business insurance that hasn’t been around all that long. However, that’s starting to change in the last few years as cyber attacks increase daily, especially with small businesses becoming extra vulnerable. The only thing that’s perhaps kept your own business from obtaining a cyber liability policy is a lack of knowledge on just how comprehensive it is as well as its affordability.
You might be surprised at what cyber liability can cover, especially when your own business has to take responsibility for a cyber breach of customer data.
Is There a Precedent for a Set Premium?
According to Inc., cyber liability insurance is still too new to have any universal agreement on premiums. When you look around, some policies are going to be considerably less depending on how much coverage you want and business size. For a small business, special care has to be taken in what an owner is willing to pay. Because no basic consensus has been set, it’s a free market system that can allow your business to negotiate a price.
Going the Extra Mile Regular Business Liability Won’t Cover
Being a specific liability policy, you may have coverage on litigation expenses should you be sued by customers over stolen personal information. Your policy may even pay for the money you lose during business interruptions, even though a business continuity plan can complement any help. The insurance plan may also provide help beyond direct money, including hiring public relations firms to help you get your business reputation back.
The more you pay, the more of these perks you’ll receive. But with more cyber liability policies likely becoming in demand, the options they provide are going to increase to attract businesses. One of those options is undoubtedly going to involve security coverage for mobile devices and tablets.
Integration with Your Business Policy
Because your regular business owners policy won’t cover things related to the Internet, cyber liability policies can be a godsend. Fortunately, they’re sometimes integrated so they can essentially work together without any interruptions. Talking with your insurance broker about integration is essential so your business will never have to experience insurance delays when a cyber attack occurs.
The Insurance Can Work as Background Risk Management
Because this is insurance, you can expect that a cyber liability policy will do everything they can to make sure nothing happens. Many policies take the time to make sure your small business is protected with the basics of firewalls and other tools that prevent hacking. While the insurance company won’t take the place of a more thorough in-house IT team, it’s a true first having an insurance company act as added security consultants when you need it.
Your timing is right, though, because you can find more independent insurance agencies starting to offer cyber liability policies. Do some research online and weigh your options on which plans have the best rates and coverage. With no precedent yet on premiums, take the time to find as many policies as you can and compare premiums before making a commitment.
References:
http://www.insurenewmedia.com/pages/cyberliability.asp
https://www.phly.com/products/CyberSecurity.aspx
http://www.forbes.com/sites/rajsabhlok/2012/10/18/do-you-really-need-cyber-liability-insurance/