Small Business Cyber Coverage Essentials

As the owner of a small business, you need to be mindful of many risks and exposures that could impact your company’s operations and growth. In the modern era, cyber incidents have become an increasingly prevalent threat to businesses of all sizes. Whereas hackers and cyber criminals may have previously focused primarily on larger enterprises, small businesses often fall under their crosshairs. Understanding and maintaining appropriate insurance coverage is paramount.

What Insurance Covers Cyberthreats?

Data breaches and cyber attacks can have devastating ramifications on your business, potentially disrupting normal functions, causing costly delays and damaging its reputation. Fortunately, a well-crafted cyber liability insurance policy can make all the difference. This type of coverage, also known as cyber insurance and cybersecurity insurance, can act as a critical shield against cyber incidents, potentially limiting out-of-pocket losses that might otherwise be unmanageable for small businesses.

What Should My Policy Cover?

Cyber liability insurance can offer multifaceted coverage and may often be tailored to suit your business’s needs, regardless of size or sector. Many standard policies can typically help pay for the following losses and expenses:

• Incident investigation costs, such as hiring digital forensics professionals to identify the cause of a data breach

• Notification expenses, such as those made necessary if other parties’ sensitive information was compromised

• Business interruption losses, including recouping income your business would have earned if not for the incident

• Incident management assistance, such as fees for the assistance of a public relations firm

• Noncompliance fines, including those issued by regulatory bodies if your business did not adhere to cybersecurity standards

• Legal costs, such as retaining representation and paying settlements and judgments if your company is sued

How Much Coverage Do I Need?

Ensuring your company’s cyber liability policy has sufficient coverage limits is critical, as losses that exceed such capabilities would have to be paid out of pocket. Your exact coverage needs may be based on several factors, including the following:

• Industry

• Types and amounts of data with which you work

• Workforce size

• Existing cybersecurity measures

• Number of clients or customers whose data you work with

We’re Here to Help

Contact Thornburg Insurance Agency in Huntington, West Virginia, today to learn more about small business cyber coverage and compare quotes for personalized policies.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.