As the world continues to digitize and cybercrime increases, the need for cyber insurance is something businesses should not overlook. If your company handles, transmits, or stores sensitive data, you need to know about cyber insurance.

Cyber insurance protects businesses from the monetary losses arising from a cyber incident that could jeopardize their future. It covers financial losses caused by events such as data breaches, cyber theft, and ransomware.

Since small businesses often lack the resources or budgets of prominent corporations, cyber insurance can provide critical financial protection in the event of a cyberattack, helping them recover quickly.

Types of cyber insurance and what they cover

Although insurers may have their specific classifications, the industry categorizes cyber liability insurance into three broad domains:

Cybertheft insurance

With more and more businesses storing sensitive data online, the risk of cyber theft is more prominent than ever. As a result, adequately insuring your company against this growing threat is critical.

Cybertheft insurance protects businesses from financial losses caused by digital theft. This type of insurance can cover a variety of cybertheft scenarios, including first-party cybertheft, embezzlement scams, payroll redirection, and gift card scams.

Businesses of all sizes can be victims of cybertheft, and no business is too small to need cyber theft insurance. Therefore, even if there is a remote chance that your data or digital assets will be stolen, ensure you have cyber theft insurance for your business.

Cyber liability insurance

Cyber liability insurance includes third-party coverage for damages and losses, data breaches, regulatory penalties, credit monitoring, and lawsuits.

Cyber liability insurance is a vital tool for small businesses like yours because the financial ramifications of a cybersecurity breach can be more severe than you can handle. However, don’t panic; it simply means that having cyber liability insurance can help your business recover and move forward, even after a breach, without being stunted.

Cyber extortion insurance/ransomware insurance

Cyber extortion insurance protects businesses against ransomware attacks. This type of insurance can help cover the cost of ransom payments, recovery expenses, business interruptions, and more. It can also provide access to a team of experts who can help with cyber extortion negotiations and forensics.

Remember that an attack could succeed even with the proper cybersecurity solutions to protect your business. That’s why it’s critical to have cyber extortion insurance. It can help you recover from a ransomware attack and reduce the financial impact.

Let’s work together to ensure your success

Cyber insurance is a complicated and ever-changing industry. Many factors can influence whether or not you qualify for a payout in a cyberattack, and trying to remain compliant with your insurance policy can be difficult. Working with an IT service provider can help you better understand your options and ensure adequate security, increasing your chances of receiving complete coverage.

Not sure where to start? Contact us today to schedule a consultation. Our knowledge and experience may be just what you require.