Understanding Cyber Insurance Coverage Types

It’s never been more important for businesses to invest in cyber safety. The pace and sophistication of cybercrime is growing every day. The average U.S. enterprise loses about $15 million per year as a result of hacker activity.

No matter the size of your business, it can be targeted by hackers. In fact, 60% of small businesses that absorb a cybercriminal attack go out of business within six months. That’s the result of the high costs of restoring business continuity after an attack, combined with lost business and reduced consumer trust.

The situation may seem bleak. After all, the cost of hacking is expected to reach $2 trillion by 2019. However, there are tools enterprises from all industries can use to protect their operations.

One of the most crucial: Cyber insurance.

This insurance isn’t just for regulation-driven sectors. All kinds of businesses are making it a priority to insure their technology assets – just like so many strive to adopt strong employee health insurance.

How Does Cyber Insurance Work? Understanding Major Coverage Types
Cyber insurance is a specialized type of commercial insurance that works to mitigate costs associated with a breach of your network and data resources. A variety of different types can help you ensure that your company’s interests are defended when you are targeted by hackers.

1. Standard Liability Coverage
Standard liability coverage is essential for enterprises that maintain sensitive data, such as confidential health information. This coverage can protect the business against liability others incur as a result of the data breach, as well as the cost of legal activities.

2. Worldwide Coverage
For multinational firms and those with strong growth prospects, worldwide coverage is a wise investment. Additional international coverage can be useful when the organization needs to navigate complex reporting requirements in different jurisdictions.

3. Data Restoration Coverage
Data restoration coverage applies to expenses directly related to getting hardware and software back into service following a data breach. This coverage can assist with damages caused by an automated attack, such as malware accidentally downloaded by an employee.

4. Business Interruption Coverage
Last, but certainly not least, business interruption coverage is valuable for minimizing disruption that follows a cybercrime event. It can aid you with various risk factors that may emerge months or even years after an attack has been identified.

Having cyber insurance can provide indirect benefits as well, potentially giving you more time to report a breach to authorities and the public.

Getting Cyber Insurance That Works For You
Cyber insurance is a complex topic that requires help from experts. A customized plan will save you money and ensure you have everything you need to move forward with total confidence.

Even if you outsource parts of your technology infrastructure or staffing, it is still critical to consider insurance that safeguards against cybercrime. Globally-distributed cloud services add complexity to how data is used and where it resides: You might discover you are liable for the outcomes of a cyber attack even if you have taken every possible precaution available to you.

With advice from financial experts who truly understand the needs of your business, you can seamlessly integrate the right insurance into your business plan. When it comes to cyber risk, Central Florida brands rely on cyber insurance from the trusted team at Flagler Financial. To learn more, contact us today.