Cyber threats certainly aren’t going away for businesses. Purchasing cyber insurance could give you peace of mind if you are concerned about how a cyber attack or data breach could harm your company.
But what exactly is cyber insurance for small businesses? Learn more about how Gilsbar cyber insurance coverage can protect your company.
Everything You Need To Know About Cyber Insurance for Your Business
As a business owner, you are responsible for protecting your business assets. You probably have physical security measures in place, such as locks on your doors and security cameras around your business. But how are you protecting your virtual assets?
Cyber insurance can help you recover from and prevent business interruptions due to cyber-related incidents. While hackers and cybercriminals may always find ways around even the strongest digital barriers, with cyber insurance, you don’t have to worry about how their activities will affect your business.
What Is Cyber Insurance?
Cyber insurance, also known as cyber liability insurance, provides businesses coverage against digital risks. Your business likely has insurance to protect against theft and physical damage; cyber insurance works much the same way, only for virtual assets.
Cyber insurance policies can vary significantly in the types of losses they cover, the coverage amount, and the covered parties. Working with an experienced insurance provider can help you find a policy covering your business’s needs.
What Does Cyber Insurance Cover?
Cyber insurance protects your business against losses due to:
- Cyber attacks
- Data breaches
- Ransomware
- Cyber extortion
- Identity theft
While the exact coverage varies depending on the policy, cyber insurance may reimburse you for costs associated with:
- Incident response: This includes the costs necessary to promptly respond to the cyber attack, such as legal fees, investigation expenses, and victim remediation costs.
- Third-party liability: If the cyber attack created damages for other parties to which you are liable, cyber insurance can also help pay for their expense.
- Business interruption: A cyber liability policy can also help keep your business afloat while you respond to the cyber threat.
What Does Cyber Insurance Not Cover?
While cyber insurance covers many expenses resulting from a digital attack, it typically does not cover:
- Loss of future revenue beyond the designated business interruption period, which is usually no more than 180 days
- Employment- or discrimination-related claims
- Loss or theft of data due to insider attacks, meaning an employee was responsible for the loss
- Loss due to employee error
Be sure to read your policy’s coverage and exclusions carefully to understand how it will protect your business.
Which Industries Need Cyber Insurance?
Some industries are required by law to carry cyber liability insurance. For example, the healthcare and finance industries must adhere to strict regulatory compliance policies for cyber protection.
Aside from these major industries, any of the following businesses may also benefit from cyber liability coverage:
- Retail and e-commerce businesses
- IT services and technology companies
- Manufacturing businesses
- Legal firms
- Government agencies
- Educational institutions
- Hospitality and travel organizations
- Energy and utility companies
Businesses in these industries tend to have a significant online presence and particularly vulnerable data that may be attractive to hackers. Even if your business type is not on this list, consider the amount of data you store online and how a cyber attack would impact your daily operations. If the thought of a data breach or ransomware attack scares you, consider cyber insurance to gain peace of mind.
Gilsbar Has You Covered With Comprehensive Cyber Insurance
If you want to improve cyber security for your business, cyber insurance can act as a safety net against digital-related losses. Gilsbar is your premier provider of comprehensive cyber liability insurance.
We offer various business risk solutions to help your business stay profitable and protected in this digital age. Contact us today to request a quote for cyber insurance or learn more about its benefits.