If you operate a business in today’s climate you know how important it is to protect your online assets and reputation from cyber attacks. That’s why cyber insurance for commercial purposes is essential for any type of business, large or small. Can you afford the downtime, financial loss and hit to your reputation in the event of a cyber attack? We didn’t think so. 

 

According to CPO Magazine, cybercrimes have accounted for trillions of dollars in losses, totaling $2 trillion as of 2019. Estimates reveal that by 2027, global spending on cyber security will hit $10 billion. And with half of all cyber attacks targeted at small businesses, even your small company isn’t averse to risk. 

 

What Does Cyber Insurance Cover?

Every company, large and small, faces cyber risk every day. But the bigger you are, the more vulnerable you are. The most prominent cyber risks include privacy, information and operational risk. Cyber insurance will protect your company from these primary risks through five basic insuring agreements:

  • Network security

  • Privacy

  • Interruption to your business

  • Media liability

  • Errors and omissions

Network Security 

This part of cyber insurance will cover your business if a network security failure were to happen. This can include a data breach, ransomware, malware infection, cyber extortion demand, or business email compromise. Network security covers 1st-party costs, which are those expenses that you incur as a direct result of the incident, including but not limited to IT forensics, legal expenses, data restoration, identity restoration and breach notifications to consumers. 

Privacy Liability 

Because customer and employee information is very sensitive, violations that expose such data not only expose your business to liability but threaten the security of everyone involved. Privacy liability coverage will protect your company from any liability that stems from a cyber incident or privacy law violation. Third-party costs can come from liabilities required in a contractual obligation, as well as regulatory investigations by governments. 

Network Business Interruption 

If your organization is highly dependent on technology to operate on a daily basis, you need network business interruption coverage. When your network goes down due to a breach of some kind, this will allow you to recover lost profits, extra costs and expenses that were incurred during the time in which your business was affected. This includes loss arising from system failure, such as human error or a failed software patch, as well as security failures such as third-party hacks. 

Media Liability 

This provides coverage for intellectual property infringement that may result from the advertising of your goods and services, applying to your online advertising, including social media, and printed advertising.

Errors and Omissions 

A cyber event may preclude you from fulfilling your contractual obligations and delivering timely and promised services to your customers. E&O covers any claim that arises from errors in the performance of your services, or failure to perform them at all. This includes anything from technology services (software and consulting) to more traditional professional services (doctors, lawyers, architects, and engineers).

Customized Policies

A cookie-cutter policy is rarely the best fit for most businesses. While the basic insuring agreements will be about the same, there are many available coverage additions that are more complex and should be tailored to your organization. It’s wise to consult with your insurance agent to explore the cyber insurance options that are best for you, as well as to understand what such policies don’t cover, such as:

  • Potential future lost profits

  • Loss of value due to theft of intellectual property

  • The cost to improve internal technology systems, including software or security upgrades after a cyber attack

Contact Bearce Insurance for Cyber Insurance


To learn more about cyber security and cyber insurance and how it can help protect your business, contact us locally at 508-586-3400 or toll-free at 800-498-9900, or get an online quote today.