What is cyber insurance coverage and why do I need it?

What is cyber insurance coverage and why do I need it?

Cyber insurance coverage is a type of insurance designed to protect businesses from internet-based risks, including data breaches and cyberattacks. It's essential because it helps mitigate financial losses and provides support in managing incidents.

What types of incidents does it cover?

It typically covers data breaches, business interruption, cyber extortion, and legal fees related to cyber incidents. Some policies may also include coverage for reputational damage.

How do I choose the right policy for my business?

To choose the right policy, assess your business's specific risks, consider the size and nature of your operations, and consult with an insurance broker who specializes in cyber insurance.

Are there any exclusions I should be aware of?

Yes, common exclusions may include acts of war, intentional misconduct, and certain types of regulatory fines. It's crucial to read the policy details carefully.

How much does cyber insurance typically cost?

The cost varies widely based on factors like the size of your business, the industry, and the coverage limits. On average, small businesses might pay between $1,000 to $7,500 annually.