In the age of internet-connected everything, data breaches and hacks are becoming more and more common. If your business keeps any sensitive customer data on hand—which most do—you could be at risk. That's where cyber insurance comes in. Cyber insurance is a type of insurance that helps protect businesses from the financial fallout of a data breach or hack. But what does it cover, exactly? And do you need it? Let's take a closer look.
What Does Cyber Insurance Cover?
The scope of coverage for a cyber insurance policy can vary depending on the insurer, but most policies will cover at least some of the following:
Costs to notify customers of a data breach
Legal fees and expenses
Cyber extortion
Loss of income
Damage to your reputation
Types of Businesses That Need Cyber Insurance
Any business that relies on technology could benefit from cyber insurance, but some businesses are at a higher risk than others. If your business falls into any of the following categories, you should strongly consider carrying a policy:
Those that handle sensitive customer data, such as medical records or financial information
E-commerce businesses
Businesses with remote employees
Businesses with interconnecting systems
Startups
Picking the Right Policy
Now that you know a little more about what cyber insurance is and why your business might need it, you're ready to start shopping for a policy. But where do you begin? The best place to start is by evaluating your risks and determining how much coverage you'll need. From there, you can compare policies from different insurers to find the one that fits your needs and budget. The cost of cyber insurance varies depending on the size and type of business, as well as the coverage limits you choose. Generally speaking, premiums start at around $1,000 per year for small businesses and can go up to $100,000 per year or more for large enterprises.
Contact Blue Viper
Blue Viper is here to help establish or review your risk profile and provide guidance on a new or existing cyber insurance policy.
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