In the modern world, business owners have to consider threats well beyond traditional crimes like break-ins and theft. Now, cyber criminals present far more dangerous threats, which could be leading you to wonder if you need cyber liability insurance for your business…
What Is Cyber Insurance?
Cyber insurance is a form of liability insurance that can cover your business for any legal or financial liability that results from a cyber incident that compromises security.
For example, if customer or client information is stolen during a cyber attack, cyber insurance can give you financial and legal protection, helping you repair damage and recover from the attack.
Consider These Cyber Insurance Statistics
• Just 26% of Small Business Owners Have Cyber Insurance
While we expect close to 100% of small businesses to be armed with cyber insurance in the future, only a quarter do so at this time, according to CNBC. That leaves roughly TWO-THIRDS of small businesses financially vulnerable to ever-increasing cyber attacks.
• 51% of Small Business Owners Pay the Ransom Demanded During a Ransomware Attack
It’s easy to consider how you’d react to a ransomware attack when it’s an abstract idea. But know that HALF of small businesses hit by such an attack end up paying the ransom, also according to CNBC.
• 24% of Those Small Business Owners That Pay the Ransom Do So Out of Pocket
Of the 51% of small business owners who paid up when hit with a ransomware attack, only 27% were able to cover the expense with cyber insurance. The rest (24%) paid out of pocket! That’s a huge financial blow from which many businesses are unable to recover.
What Will Cyber Insurance Cover?
While cyber insurance can vary in coverage by insurer or coverage plan, you can expect a baseline of coverage from just about any kind of cyber insurance…
Cyber insurance will normally cover:
• The cost to notify affected individuals (consumers whose info has been compromised)
• Recovery and restoration of data
• Any lost funds (such as a ransomware payout)
• Civil damages from lawsuits
• Credit monitoring services
• Computer forensics
• Repair of devices
• Public relations costs related to the restoration of public image
Cyber insurance often DOES NOT cover:
• The cost to improve cybersecurity after an attack
• Losses as a result of theft of intellectual property
• The loss of future profits due to a cyber event
• Lawsuits based on risks present prior to a cyber incident
• Financial losses caused by foreign cyber criminals
What Can I Expect to Pay For Cyber Insurance
If you’re a small business owner, you likely have a strict budget to which you need to adhere. So it’s only prudent to ask the question, “how much will cyber insurance cost?”
As you might already expect, the cost will depend upon a number of factors…
• The size of your business
• The existing cybersecurity of your business
• The amount of sensitive data your business handles
• The level of coverage you choose
• Industry
• Etc.
But for the sake of “ballparking” a number for you, the average cost of small business cyber insurance tends to fall within the range of $1,500 to $2,000 per year.
Adding CyberMyte to Your Cybersecurity Plan
Cyber threats are a regular part of modern business, especially for small businesses that cyber criminals view as easy targets.
But that doesn’t mean you don’t have any options.
And no matter which direction you go, CyberMyte can add protection and bring down costs for your business…
Planning on getting cyber insurance for your business?
Great! We highly encourage it.
And as we covered already, the cost of that insurance will depend on a number of factors, most significant of which will be your existing cybersecurity structure.
By bringing on CyberMyte to serve as your own personal cybersecurity department—providing a secure cloud infrastructure, expert cybersecurity consulting, or both—you can expect a much lower annual cyber insurance cost!
Cyber insurance gives you financial and legal protection, but wouldn’t it be better to safeguard your business from cyber attacks before they happen?
Looking to avoid cyber attacks entirely?
Good idea!
That’s what CyberMyte is here to do!
Our expert team is trained to eliminate high-risk vulnerabilities within 24 hours, ensuring your data remains safe.
And that’s only the beginning.
Explore all the ways CyberMyte can protect your business.
