Cyber Liability Insurance: Is It Worth It?

Cyber attacks aren't just a big business problem. Small businesses are actually prime targets because hackers know they often lack sophisticated security measures. A single data breach can cost tens of thousands of dollars in notification expenses, legal fees, regulatory fines, and lost business. Cyber liability insurance protects your business from these digital-age risks.

What Cyber Liability Covers

Cyber liability coverage typically includes:

• Data breach response - covering the cost of notifying affected customers, providing credit monitoring services, and hiring forensic experts to investigate the breach
• Legal defense - if you're sued by customers whose data was compromised
• Regulatory fines and penalties - for violations of data protection laws
• Business interruption - income lost during system downtime
• Ransomware payments - in some policies

Who Needs Cyber Coverage?

Any business that stores customer data electronically needs to consider cyber coverage. This includes businesses that:

• Accept credit card payments
• Maintain customer email lists
• Store personal information like addresses or phone numbers
• Use cloud-based software and services

If you have a website, use email, or accept digital payments—you have cyber exposure.

Cost vs. Risk

The cost of cyber liability insurance is modest compared to the potential losses. Small businesses can often get $1 million in coverage for $500 to $1,500 per year. Compare that to the average cost of a data breach, which runs $120,000 or more for small businesses when you factor in all expenses. It's affordable protection against a very real and growing threat.

Add Cyber Protection Today

SmartInsured offers cyber liability coverage that's easy to understand and quick to purchase. Our team helps you assess your digital risks and find appropriate coverage limits. Don't wait until after a breach to get protected. Add cyber liability to your coverage today.