5 min read
You may think your General Liability insurance policy is all your business needs. But these policies don’t cover the loss exposures that cyber insurance policies do! What happens if your company is hit with malware, ransomware, or suffers a data breach? You need cyber insurance.
Cyber insurance (a.k.a. Cyber Liability, Internet Liability, Electronic Media Liability, and Network Security & Information Liability insurance) helps companies weather the storm from technology-based risks. This includes risks associated with a company’s IT infrastructure and activities such as systems failure, cyber attack, or data breach.
Every business faces cyber risk, no matter how small. Cyber risk includes privacy risk, security risk, and operational risk. Cyber insurance helps cover legal fees and expenses, but it can also help you with other essential tasks, including:
Any business big or small that relies on technology to operate needs cyber insurance — even something as basic as email. Organizations that process sensitive information like names, addresses, Social Security numbers, credit card information, or medical records face additional exposures. It’s also worth noting that any third party who handles your data or confidential information, like an IT company, should have their own cyber insurance policy.
Questions to ask yourself when trying to decide if your business needs cyber insurance:
When comparing cyber insurance policies, it’s best to shop by coverage rather than cost. Different factors can impact the cost of your cyber insurance policy, mainly your company’s sophistication and ability to avoid a cyber incident.
Your cyber insurance cost may depend on:
All insurance policies have exclusions, and cyber insurance is no different. Cyber insurance policies typically, among other things, does not cover:
Not all cyber policies are equal. When purchasing cyber insurance, carefully review all coverages and policy language, then decide what is best for your business. We also recommend that you consult with an experienced insurance broker. QuickBooks has teamed up with Coalition to make sure your business has the right cyber insurance coverage at the right price. Contact QuickBooks Insurance to obtain free quotes, so you can confidently manage your business.