(704) 494-9495

Request a Quote Today!

8 Questions Regarding Cyber Insurance and Your Business.

Cyber insurance is relatively new in comparison to other business insurance types.  It is increasingly being a necessity for many businesses today though.  Some industries require it while others simply want it to protect themselves.   

You have worked hard to build your business and maintain it.  It can only take one unfortunate situation to cost you a significant amount of money or even put you out of business. 

With cyber insurance being so new, many companies don’t fully know exactly what it is and if they have a need for it.  We have put together a handy questionnaire to help you assess your need for this valuable product.

Ask yourself these 8 questions when determining if cyber insurance is right for you.

      1.  Do you have employees? 

Most breaches come from mistakes made by your employees.  You may tell yourself that you wouldn’t make any mistakes that would cause a data breach.  The same may not be said for those who work for you. 

Even when an employee has the best of intentions, mistakes can be made.  Simply opening an email that is suspect could lead to someone accessing your customer’s or vendors information wreaking havoc on maintaining the success of your business. 

Also, keep in mind that we are all humans and even us as business owners can make a simple mistake.  Oftentimes you don’t even need to make a mistake.  You have just experienced bad luck in becoming the target.   

     2.  Does your business have a website? 

Your website could be hacked which could cause valuable information getting stolen.  You could also face business disruption due to your website being down.  Further, you could be at risk of defamation in printed word and copyright and trademark infringements. 

You should also make proper considerations to ensure your business website is ADA compliant.  Your cyber insurance policy may protect against some of that backlash.

     3.  Does your business accept credit or debit cards or other mobile friendly payments? 

Cyber criminals are most often trying to obtain customer credit card numbers in these data breach situations.  This can be especially detrimental if you store any payment information. 

In fact, 40% of all cyber crimes come from an attempt to steal client credit card information 

     4.  Does your business use email? 

A lot of information is delivered by email and could get into the wrong hands which can come back as a claim against your business. 

You could also have someone hack your email and send out phishing emails that could come back on your business. 

     5.  Does your business keep records of customer information? 

If you keep records of customer data than you could be at risk of this data being stolen. 

That includes but is not limited to the following: 

  • Social Security Numbers 
  • Date of Birth 
  • Drivers License Numbers 
  • Credit Card Info 
  • Bank Account Info 
  • Addresses 
  • Email Addresses 
  • Medical Records 
  • Company Tax ID Numbers 

     6.  Do your employees use personal devices? 

Stolen phones, laptops, and tablets could contain valuable customer data that could be detrimental if it got into the wrong hands. 

Even if a hacker can’t get into your network, they may have a much easier time getting into your employee’s devices. 

     7.  Does your business have a social media presence? 

I don’t have to tell you that we live in very sensitive times.  If you or an employee posts a comment on Facebook, Instagram, Next Door, etc, and it is seen as discriminatory or harmful to another person it can be very damaging to your business.   

Remember, the intentions of your comments don’t even matter these days.  Only how someone received your comments. 

    8.  Do you know exactly how to react if you had a cyber breach? 

Let’s say the worst thing happens, and you are a victim of a data breach.  There are certain things that need to happen immediately.  If you have cyber insurance, the company will immediately go to work to rectify the situation and acting quickly can be the difference between an unfortunate situation and something that may put you out of business. 

Let’s discuss some of those common claims paid by cyber insurance companies. 

Common Claims Paid by Cyber Insurance 

  1. Paying ransomware. 
  2. Covering fraudulent funds transfer from your bank. 
  3. Reimburse you for lost income from a network or website interruption. 
  4. Cover legal fees in suits made against your company from a data breach. 
  5. Pays legal fees for slanderous comments made by your company on social media. 

I hope this has helped shed some light on the world of cyber insurance and how it can be useful to your business. 

If you have any questions or would like a quote on this valuable coverage, please don’t hesitate to reach out to us at 704-494-9495.  We directly represent the best companies and the most competitive premiums in the industry.   You can also click here for my previous article on this topic.