How to Create the Right Cyber Insurance Policy for Your Business

If you’re a SMB, then you’re at risk for a cyber attack. Almost half of cyber attacks target SMBs because they know smaller organizations may lack the in-house resources that enterprises have. This is why having cyber insurance is key. Cybercriminals recognize that smaller businesses can’t afford downtime and are more likely to respond to extortionate demands. Cyber insurance is a key element in creating a unified front against cyber threats, and protecting your business against prying cybercriminals. 

Here’s What You Need to Know About Cyber Insurance:

Cyber Insurance Benefits for SMBs

Having a layered cyber security approach is the best course of action. Cyber security plans are designed to protect you and your business. However, they are not perfect as new threats emerge daily and human error persists. That’s why it’s so important to choose a cyber insurance provider that covers the following:

When choosing a cyber insurance provider, you want a provider that can help cover costs associated with system restoration, lost revenue, and reduce liability from exposed confidential data. It is also essential that your insurance provider and IT team can work together to streamline the process after a security event. 

The High Cost of Forgoing Cyber Insurance 

If you choose to forgo purchasing cyber insurance, there are some things you should know. The first being that the average cost of a data breach is between $120,000 and $1.24 million. You or your business are not getting any of that money back if you don’t have cyber insurance. But it’s also worth remembering that the wrong insurance policy also won’t help you recoup losses after a security incident. Here are five warning signs an insurance provider isn’t going to work for your business:

If a cyber attack is successful, 25% of organizations file for bankruptcy and 9.7% go out of business. These attacks could have originated as data breaches, business interruptions or cyber extortions, which are all common cyber attacks. According to DataStream, 89% if businesses who have cyber insurance said that it covered their losses and that they were very glad they did have it. 

Finding the Right Cyber Insurance Policy

When it comes to cyber insurance, looks for solutions that offer coverage at a competitive price, create simple and understandable models based on extensive data, outline a plan of action before a breach occurs. Choosing a plan with these three aspects will give your business the best overall outcome. Remember, cyber insurance shouldn’t be your only point of protection. Consider implementing these additional security tools, and reaching out to iCorps for a free cyber security and insurance consultation.