CyberSecurity Insurance
Coverage
Cybersecurity Insurance, also known as Cyber Insurance or Cyber Liability coverage, is a specialized policy that protects businesses from financial losses resulting from cyber incidents. These incidents may include data breaches, cyberattacks, ransomware, business email compromise, and other forms of cybercrime. Cybersecurity insurance covers various aspects such as liability, expenses related to data breaches, regulatory fines, legal fees, and even extortion payments.
Choosing the right cybersecurity insurance ensures you’re covered in the event of a cyberattack or data breach, helping protect your business’ assets and reputation.
Considerations
What are your business’ specific cybersecurity risks?
What data do you collect and store?
How much coverage do you need?
What is your budget for premiums?
Do you need additional coverage options?
How does cybersecurity insurance align with your overall risk management strategy?
Premium Basis
Business Size and Industry
Type of Data Collected and Stored
Data Sensitivity
Security Measures in Place
History Cybersecurity Incidents
Policy Limits and Deductibles
These are just some of the many factors used to determine the best policy for your unique cybersecurity circumstances.
Cyber Insurance Coverages
Cybersecurity Insurance offers a range of coverages to protect businesses from the effects of cyber incidents.
Cyber Liability Coverage
Cyber liability coverage protects businesses against financial losses resulting from data breaches, cyberattacks, and other cyber incidents. This includes coverage for data breach response costs, legal fees, regulatory fines, and cyber extortion expenses.
Cyber Crime Coverage
Cybercrime coverage guards against financial losses due to fraudulent activities such as social engineering fraud, phishing attacks, and computer fraud. This coverage is crucial for businesses that rely on digital transactions and online communication.
Network Security Liability
Network security liability covers damages and legal costs if third parties sue your business due to a cyber incident affecting their data or operations. This coverage is essential for businesses that handle sensitive customer or client data.
Business Interruption Coverage
Cyber incidents can disrupt business operations, leading to income loss and additional expenses. Business interruption coverage ensures continuity of operations by reimbursing income loss and additional expenses incurred due to a cyber incident.
Data Loss and Restoration Coverage
Data loss and restoration coverage provides protection for costs associated with recovering lost, damaged, or corrupted data. This coverage is essential for businesses that rely on digital data for their operations.
System Damage and Repair
This coverage addresses the costs of repairing or replacing damaged computer systems, networks, and electronic devices resulting from a cyber-attack, malicious code, or denial-of-service attack.
It includes expenses for restoring affected systems to their pre-incident state and ensuring the continuity of IT operations critical to business functions.
Cyber
TERMS
Cyber insurance is a relatively new line of business and with it, comes some specific coverages that you might not have seen before.
Data Breach Response Costs
When a data breach occurs, businesses must take immediate action to mitigate the damage. This includes notifying affected individuals, conducting forensic investigations, and providing credit monitoring services.
Cyber Extortion Expenses
Ransomware attacks are a growing threat to businesses of all sizes. Cyber extortion coverage provides financial protection against the costs associated with ransomware attacks, including ransom payments and expenses related to negotiating with cybercriminals.
Social Engineering Fraud Protection
Social engineering fraud involves manipulating individuals into divulging confidential information or performing actions that compromise security. Cybercrime aids in businesses recover financial losses resulting from these schemes.
Phishing Attack Coverage
Phishing attacks are a common method used by cybercriminals to steal sensitive information. Cybercrime coverage provides protection against financial losses resulting from phishing attacks, ensuring businesses are not financially burdened by these incidents.
Computer Fraud Protection
Computer fraud involves unauthorized access to computer systems to steal data or funds. Cybercrime coverage includes protection against computer fraud, helping businesses recover losses resulting from unauthorized access to their computer systems.
Data Recovery Expenses
Recovering lost or damaged data can be a costly and time-consuming process. Data loss and restoration coverage includes protection for data recovery expenses, ensuring businesses can restore their data without incurring significant costs.
Corrupted Data Restoration
Cyber incidents can lead to data corruption, making it difficult for businesses to access and use their data. Data loss and restoration coverage provides protection for the costs associated with restoring corrupted data, helping businesses recover quickly from cyber incidents.
Why Cyber Insurance Matters
At TIS Insurance, our Cybersecurity Insurance policies provide:
Financial Protection
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Risk
Management
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Peace
of Mind
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Cyber Insurance
FAQs
Why do I need Cyber Insurance for my small business?
Even small businesses are susceptible to cyberattacks, and the financial consequences can be devastating. Cyber Insurance provides a safety net by helping you cover the costs of recovering from an attack and minimizing financial losses.
According to the latest reports, the average cost of a cybercrime incident for a small business in the United States is somewhere around a staggering $42,000. A Cost of Data Breach Report reveals that small and medium-sized enterprises (SMEs) experience a higher average cost per stolen record compared to larger organizations.
These numbers highlight the vulnerability of small businesses and the potential devastation a cyberattack can cause. Traditional insurance policies often lack adequate coverage for cyber threats, leaving businesses exposed to significant financial losses.
What types of cyberattacks does Cyber Insurance cover?
The specific types of attacks covered will vary depending on the policy, but common coverages include data breaches, ransomware attacks, malware infections, phishing scams, and denial-of-service (DoS) attacks.
What costs are covered by Cyber Insurance?
Cyber Insurance can cover a variety of expenses associated with a cyberattack, such as:
- Data Breach Costs: Notification, forensic investigation, credit monitoring
- Business Interruption: Lost revenue and additional expenses due to downtime
- Cyber Extortion: Negotiation assistance and ransom payments (up to a limit)
- Network Security Liability: Legal fees and damages from lawsuits
- Crisis Management: Public relations and reputation management costs
How much does Business Cyber Insurance cost?
The cost of Cyber Insurance for a small business can vary depending on several factors, including:
- The size and industry of your business
- Your existing cybersecurity measures
- The scope of coverage you choose
- Your deductible
What are some exclusions in Cyber Insurance policies?
Cyber Insurance policies may have exclusions for certain types of cyberattacks, such as acts of war or cyber terrorism. It’s important to carefully review the policy details and exclusions before purchasing a Cyber Insurance policy.
How does business interruption coverage work in a Cyber Insurance policy?
Business interruption coverage reimburses income loss and additional expenses incurred due to a cyber incident that disrupts business operations. It ensures continuity of operations by providing financial support to businesses during the recovery period, helping them maintain their financial stability.
What is network security liability?
YNetwork security liability covers damages and legal costs if third parties sue your business due to a cyber incident affecting their data or operations. It provides protection against third-party liability claims, ensuring your business is not financially burdened by lawsuits and legal expenses.
What are some additional steps I can take to protect my business from cyberattacks?
- Implement strong cybersecurity measures like firewalls, data encryption, and employee security awareness training.
- Regularly update your software and systems.
- Back up your data regularly.
- Have a plan for responding to a cyberattack.
What steps can I take to reduce my premium?
Implementing strong cybersecurity measures, like data encryption, employee training, and multi-factor authentication, can help reduce your premium by minimizing the risk of a cyber incident.
Why is Cybersecurity Insurance important for small businesses?
Small businesses are increasingly targeted by cyber criminals due to their often weaker security measures. Cybersecurity Insurance helps cover costs that could otherwise threaten the survival of a small business.
Do you have more questions?
Please reach out to our agents (all contact information below). We’re here to assist you in understanding your Cybersecurity Insurance options and finding the coverage that best meets your needs.
Get a Quote
- Provide us with a little information about yourself and your needs.
- A TIS Team Member will reach out to gather additional information needed to provide an innovative, accurate quote.
- Get the coverage you need.
Meet our
Cyber Insurance Team
Morgan Thomas
mthomas@TISIns.com
Carson Thomas
cathomas@TISIns.com
Carter Thomas, CMIP
cthomas@TISIns.com
Jared Smith
jsmith@TISIns.com
Jay Werner
jwerner@TISIns.com
joakes@TISIns.com
jfritts@TISIns.com
Josh Hearl
jhearl@TISIns.com
Kelly Thomas, CMIP
kthomas@TISIns.com
Robert Eldridge III
reldridge@TISIns.com
Spencer Nelson
snelson@TISIns.com
sfoakes@TISIns.com
