Businesses that don’t have the same amount of personal information, however, may still want the protections that a cyber policy affords. They can still be held accountable for any data they have that’s compromised. For example, even a restaurant that accepts online reservations might be held liable for any diners’ details that are lost through an online attack.
What Protections Do Cyber Insurance Policies Offer?
Cyber insurance policies offer a variety of protections against emerging online and data-related threats. When a business succumbs to a covered attack or experiences a covered data breach, a cyber policy might reimburse the business for:
- Revenue that’s lost because operations had to be temporarily stopped or slowed
- Revenue that’s lost because a business’ reputation is tarnished by the incident
- Reparations that are owed to affected customers or clients
- Expenses associated with offering affected individuals credit monitoring services
- The cost of hiring programmers to identify and address any targeted security weakness
- Forensics costs
- Costs for legal and public relations services
Do Cyber Policies Cover Ransomware Attacks?
Ransomware attacks are online attacks that hold a business’ data hostage for a ransom payment. These kinds of online attacks are becoming more and more common.
Some cyber policies provide protection from this type of threat, but not all do yet. Businesses that want to make sure they’re protected from ransomware attacks should work closely with an insurance agent to find a cyber policy that does offer robust protection against these threats.
Do Businesses That Have Commercial Property Insurance Still Need Cyber Insurance?
It’s usually advisable to get cyber insurance regardless of whether a business has commercial property insurance, because the two types of insurance offer different protections.
Commercial property policies may offer coverage for computers, but their protections are often limited to hardware. They’ll frequently only cover the cost of replacing or repairing broken hard drives, screens, and other physical electronic equipment.
In contrast, cyber policies are generally designed to help protect the information that’s stored on computers (or in the cloud). Cyber policies normally safeguard data from being stolen or otherwise compromised.
Without a cyber policy, businesses frequently have little or no protection for the information that’s stored on their computers.
How Can Businesses Get Cyber Insurance?
Because cyber insurance is a fairly new type of insurance, coverage standards aren’t yet established across the industry. Some policies offer a lot more protection than others, so it’s important to carefully review each policy’s terms, conditions and exclusions when selecting a policy. Businesses that would like help comparing policies and selecting one that meets their needs should speak with an independent insurance agent who’s familiar with this form of insurance. An independent agent will be able to request quotes for multiple policies from different insurers, and they’ll have the expertise needed to accurately compare each policy’s coverages.