Owning a small business requires significant investments, and it’s only natural to want to protect the time, energy and collateral you’ve put into it. One way to safeguard your business is by having the proper insurance coverage. Most businesses have a standard commercial insurance plan, but another coverage worth considering is cyber liability insurance.
You may think your small business would never be a target for cyber crimes. But more than half of cyber attacks are committed against small-to-midsize businesses. Of those, 60% close their doors within six months of an attack, according to a report from Cybersecurity Ventures. It is critical to ensure that your company’s data is protected.
What Is Cyber Liability Insurance?
Cyber liability insurance, also known simply as cyber insurance, can help provide financial assistance after a cyberattack, data breach or other event that results in data loss.
What Does Cyber Insurance Cover?
Cyber insurance typically helps pay for recovery costs and services associated with the incident, such as the following:
- Notifying individuals whose information is affected
- Recovering and restoring compromised data
- Credit monitoring services
- Public relations costs to repair reputational damage
What Types of Businesses Need Cyber Insurance?
Almost any business can be at risk for cyber crimes, but cyber liability insurance is especially critical for the following:
- Businesses that store critical data online or on computers
- Businesses with large customer bases
- Businesses with high revenue or valuable digital assets
Speaking with an insurance provider can help you determine terms, limits and exclusions to create a policy that best suits your business’s needs.
Cyber Liability Insurance in Englewood, Hackensack and Westwood, NJ
If you are interested in learning more about cyber liability insurance, contact Johl & Company. We can help you get the optimal cyber liability insurance policy for your business. Reach out for more information or to get a quote.
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.