Common Cyber Insurance Questions Answered
Feb 25, 2021
Get answers to all your Cyber Insurance questions
As a business owner researching Cyber Insurance for the first time, a lot of questions might run through your mind. Don't worry; we'll answer the common questions that pop up in every business owner’s head when they're learning about Cyber Insurance like, "Can my small business experience a cyber attack?" and more.
Are Cyber Claims covered by traditional Business Insurance Policies?
Though some companies offer cyber extensions or additional coverages within your Commercial Insurance package, the prices and coverages are different from that of a stand alone Cyber Insurance policy. The price of the add-on actually tends to be more expensive than a stand alone policy of similar limits! Plus, additional coverages like cyber extortion, social engineering and business interruption, as it relates to a cyber attack, may not be available on these add-ons; these are all included in a stand alone cyber policy.
Is My Business Too Small to Experience Cyber Attacks?
You may think your small business won't be a target of cyber attacks but the reality is 43% of recent cyber attacks are targeted at small and medium sized businesses and 60% were forced to close their doors following a cyber incident. Insurance at its core is about risk transfer; in the vast majority of cases, when a business has a Cyber Insurance policy in place, they will be able to continue business after a cyber attack. Damage to your business' reputation is something that is included in most Cyber Insurance policies and is a major reason for success even after a cyber incident.
How Costly Are Cyber Attack Incidents?
Small businesses that suffered a breach were down for an average of 59 hours. 37% of small businesses estimate the cost of a cyber breach to be over $100,000; 20% of business owners did not expect the cost of the breach. Cyber Insurance is often affordable for small and medium sized businesses, emphasizing the importance of getting Cyber Insurance before a costly cyber incident occurs.
How Do Cyber Attack Response Experts Work?
Most importantly, as a business, the value of Cyber Insurance comes from the experts that assist when a breach does occur. Experts believe the average cost of downtime is $5,600/minute, so every minute counts. Without Cyber Insurance, you're going to need to find a company to help your business. Let's say, it takes a day to find one with a strong reputation, but what if the breach happened at the end of the day on Friday and no one is available to help until Monday? Maybe you need to buy Bitcoin because of a ransomware attack? What about trying to determine what was taken or if any of your data is impacted? Is the malicious software actually gone from your network? This takes time and knowledge; a Cyber Insurance policy can help support business owners like you with a response team to make a cyber attack as painless as possible.
Learn the answers for another common question, "What Happens If I Don't Have Cyber Liability Insurance?"
Do you have any other questions about Cyber Insurance? Foxquilt is happy to help. Getting the right kind of Cyber Insurance policy can be a time consuming and confusing process; our team of experts at Foxquilt can help you by answering all of your questions and providing you with a tailored quote, unique to your business needs. Get your quote today
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