Cyber attack business insurance

Cyber attack business insurance

As an owner of a small business, you face a number of risks from accidents, property damage, workers comp, and other situations. However, your business is also at risk from cyber attacks which include everything from data breaches to being hacked.

Cyber security insurance is all about protecting your business data from cyber attacks. It protects against damages that are caused by electronic threats to your computer systems and/or your data. These types of threats can result in theft, damage, and/or the misuse of sensitive information or other important technologies, which can then lead to downtime and the costs associated with specialized repairs as well as legal fees.

If your business computer system or mobile devices used for your business are compromised by an accidental or intentional attack, you could be held liable for the cost of notifying any affected party as well as the cost for providing credit monitoring, even if the data is never utilized.

Purchasing insurance against cyber attacks for business can provide your business with the protection it needs to counteract the potentially devastating financial effects that cyber attacks can have.

Does your business need it?

The threat of computer hacks and data breaches for businesses has been on the rise as more and more businesses are using and storing digital data. In addition, hackers are launching bigger and more frequent cyber attacks every year, so it’s critical that you take control to protect yourself and your business.

Does your business need cyber security insurance?  The answer is “yes” if you are:

  • Accepting credit card payments online
  • Storing medical or financial data
  • Regularly using computers and mobile devices
  • Storing a database of customer information 

What does it cover

Most cyber security insurance covers any financial losses that are the result of data breaches and other cyber events. Cyber security insurance coverage includes first-party and third-party coverages.

First party coverage pays expenses that your business directly incurs due to the breach. Coverage can include:

  • Loss of income and extra expenses
  • Costs of data recovery, to replace electronic data, damaged, destroyed or stolen programs
  • Cyber extortion
  • Notification costs
  • Damage to the reputation of your business

Third-party liability coverage typically apply to damages or settlement due to covered claims as well as the cost of any legal defense, including:

  • Electronic media liability
  • Regulatory proceedings
  • Network security and privacy liability

Many cyber risk insurance policies now offer business interruption insurance for lost income when hacks and DDoS (distributed denial-of-service) attacks bring your business to a standstill. 

Cyber attacks are becoming more and more frequent occurrences, so there’s a good chance that your business will become a victim of cyber crime. But trying to find the best insurance coverage for your particular business situation can be time-consuming and frustrating.

Daniel Fraisse, business insurance broker in Los Angeles, can help take the hassle out of the process while finding the best cyber security policy to fit your financial needs. Contact Daniel Fraisse to schedule an appointment to discuss cyber security risks to your business and the insurance coverage needed to protect you and your business from those risks.