Is Cyber Insurance Coverage Essential for a Small Business? 

As a small business owner, you must navigate a dynamic and unpredictable labyrinth of risks and exposures that might threaten your company’s finances and future. In recent years, cyber incidents and data breaches have emerged as increasingly prevalent threats for which your loss control measures must account. That’s why working with a qualified insurance professional, such as those at Bruni Insurance Agency, and ensuring a comprehensive understanding of cyber insurance coverage is critical.

What is Cyber Insurance?

Also known as cyber liability insurance, these policies can financially protect companies of all sizes and industries from the monetary ramifications of phishing attacks, malware infections, data breaches and other cyber incidents.

Like many types of insurance, your coverage is maintained through regular (e.g., monthly) premiums. In exchange for these payments, you’ll have the ability to file a claim for financial aid following cyber incidents.

If approved, resulting payouts could be critical in limiting out-of-pocket losses.

Why Do Small Businesses Need Coverage?

You should dispel any misconception that your small business is unlikely to become a target for cybercriminals and hackers.

While it may have once been true that such perpetrators are more likely to target large enterprises and government entities, recent findings have shown that small- and medium-sized companies are being attacked more frequently.

Furthermore, as a small business, you may lack the resources and staff to recover from such incidents on your own, necessitating the availability of outside help.

Fortunately, the right cyber insurance can help pay for many losses and expenses arising from a potential incident, including the following:

• Breach response costs, such as investigating the incident and notifying affected parties

• Reputational rehabilitation, such as hiring a public relations firm or crisis management team

• Business interruption losses, such as income you would have earned if not for the incident

• Legal expenses, such as attorney fees, settlements and judgments, should affected parties sue your business

• Noncompliance fines, such as those issued by regulatory bodies if your company fails to maintain adequate cybersecurity measures

We’re Here to Help

At Bruni Insurance Agency, we understand the importance of cyber insurance and will work with your small business to ensure ideal coverage. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.