As consumers, we are no strangers to data breaches. Past holiday seasons brought us powerful examples at a corporate level, but small business are far from exempt from the destructions of a cyber-attack.
Along with the increased sales volume of Black Friday, Shop Small Saturday, and Cyber Monday, there comes an increased exposure to risk.
Cybersecurity Insurance (also called Cyber Risk Insurance, Cyber Liability Insurance, or Data Breach Insurance) can be a powerful addition to your response plan of not only preventing cyber-attacks, but also being prepared to respond if and when one happens.
Technology has blessed many Main Street businesses, local store fronts, and restaurants. Thanks to software like Square and Clover, small businesses are able to turn their computer, tablet, and phone into a fully functioning POS system. Website templates also allow the average small business owner to create a website and sell their products online for a relatively small fee.
However, all of these advancements open small businesses up to cyber-attacks. Even if you only do a few hundred sales a year using an electronic POS system, you are still at risk of exposing the data of a few hundred patrons.
Thankfully, Cybersecurity Insurance is a newer add on to traditional business insurance that helps protect both the business owner and their customers. Here’s what you should know if considering adding cybersecurity protection to your insurance plans.
1) There’s no standard pricing
“The first question I generally get is, ‘how much does it cost?’ and the answer is not cut and dried. There a variety of factors that determine the cost of cybersecurity insurance. They include the type of the business or organization, the number of employees they have, the amount of revenue or sales they produce in a given year—all of that, among other factors, impacts the premium,” says Business Insurance Manager, Jeff Boardman.
“In addition to industry expertise and resources, The John Yurconic Agency is in a unique position to offer the best coverage and price available because we represent multiple carriers who offer cyber liability coverage. We have the ability to write a stand-alone policy line that can provide upwards of a million dollars, or more, of protection.”
2) There are different types of insurance coverage for cyber breaches
Business have different needs, and insurance companies know this. So, they offer two different types of Cybersecurity Insurance coverage to meet the different needs.
First party coverage is the typical coverage that a small business, retail space, or restaurant would rely on after a cyber breach. This coverage would help a business:
- Notify customers of the breach
- Help set up credit monitoring for customers affected by the breach
- Assist with any PR necessary to clear this incident and restore the company’s reputation
- Potentially cover part or all of the income lost as a result of the data breach
Third party coverage helps tech, IT, and contracting companies stay safe if their service was the conduit for the breach. This type of insurance is what would cover a POS system provider if their system’s functioning was responsible for the breach.
3) Insurance coverage does not cover everything
There are a few grey areas when it comes to insurance coverage for cyber breaches. Many insurances do not cover intellectual property, damaged reputations, and in some instances, decreased number of sales. However, the John YurconicAgency is committed to finding you the very best coverage available, and work with you to ensure comprehensive coverage as much as possible.
Make sure to protect yourself and your customers this holiday season, and all year round, with complete business insurance and cybersecurity coverage. For more information, or to speak to a representative about adding cybersecurity coverage to your plan, contact Jeff Boardman, by calling 610-770-6600 x105, today.