Protect yourself from cyber threats and liability claims
Cyber insurance protects your small business against threats to computer systems and data. It minimizes financial losses caused by theft, damage, or misuse of sensitive information and technologies. This coverage is also called cyber security insurance or cyber risk insurance.
A cyber policy is a valuable addition to your business insurance strategy and includes first- and third-party protections for your company and customers. Learn how cyber insurance coverage can help with downtime, data recovery costs, repairs, and legal fees.
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Who needs a cyber insurance policy?
Any business that stores or processes sensitive information should consider cyber insurance. This data can include names, addresses, Social Security numbers, medical records, or credit card information.
Third parties that handle your confidential data and information, such as accountants or IT services, should also have their own cyber insurance policy. It's a good idea to get proof of coverage before working with them.
As more small businesses use and store digital data, the need for this coverage has increased. Some of the many businesses that should consider a cyber policy include:
The cost of cyber insurance depends on your business's risk level and the amount of coverage you need. For example, a company handling sensitive data that needs $3 million in protection can expect to pay more than a lower-risk business with a $250,000 policy.
Other factors, such as network security, data access, and claims history, can also influence your premium. Understanding what impacts cyber insurance cost can help you anticipate your rate.
What affects the cost of cyber insurance?
Several key elements determine your premium, including:
Coverage limits
Having higher coverage limits generally costs more, but it gives you more protection when you need it.
Risk management
Establishing a strong cybersecurity strategy reduces your risk of being compromised and can help you save on your policy. For example, limiting data access to only essential users minimizes the possibility of human error and improves control. A secure network with data protection measures like encryption, antivirus software, and firewalls can also lower your premium.
Data sensitivity
The type of data you store affects the price of cyber insurance. Less sensitive data, such as purchase history, may cost less to insure than personally identifiable information (PII) like Social Security numbers, home addresses, and bank account details.
Company size
The size of your company can affect the cost of your cyber insurance policy. More customers and higher revenue usually lead to increased rates.
Claims history
Companies with a history of making cyber insurance claims may pay more for coverage.
First-party coverage: These protections help your business recover after a computer attack, such as a data breach. They help with things like investigative services, downtime, and data recovery.
Third-party coverage: If a cyber attack on your business affects your customers or partners, third-party coverage can help with legal fees, settlements, and claims related to security failures and media liabilities.
The amount of coverage you need depends on your business's size and risks. Smaller companies can usually add cyber protection to a business owners policy (BOP), but others might need to get a separate cyber policy with higher limits.
Why is cyber security insurance important?
Cyber insurance protects the financial well-being of your small business if you're ever faced with a cybersecurity breach. It's designed to help you recover quickly by covering costs for IT forensics investigations, data restoration, legal liability, and customer notification.
Worry less about online threats and focus more on running your business. Get a free quote to learn how cyber insurance coverage can work for your situation.
What's the difference between cyber insurance and data breach insurance?
Data breach insurance is a type of cyber insurance coverage that helps when PII or personal health information (PHI) is stolen or exposed. It can pay for things like notifying customers, getting legal advice, and offering credit monitoring. If you have to pay legal fees and settlement costs, data breach insurance will cover those too, up to your policy limit.
Cyber insurance includes protection for data breaches and other digital threats. It covers expenses for data recovery, extortion payments from ransomware, cybersecurity-related lawsuits, and legal or investigative fees related to a cyber attack.
If you don't need the broad protection of a cyber insurance policy, you can get data breach coverage by adding it to another policy, like a BOP.
Cyber insurance vs. tech E&O
Cyber insurance helps protect your business from computer attack claims, but it doesn't cover problems with how your product or service works.
If you have a technology-based business, like a software development or web design company, you might also need technology errors and omissions insurance, also known as tech E&O. This type of professional liability coverage helps if your product or service doesn't work the way it's supposed to and someone loses money because of it.
For example, a developer for an e-commerce software company accidentally causes a system outage that results in lost sales for several clients. Tech E&O can cover costs if the business gets blamed for the problem.
Think you might need tech E&O insurance? Learn more about your professional liability options.
What doesn't cyber insurance cover?
Cyber insurance doesn't cover indirect losses that result from a data breach or cyber attack. In other words, it can't help if a data breach causes a loss of intellectual property or damage to your brand. Understand what protections cyber insurance includes, like coverage for data recovery and business interruption.
Cyber insurance personalized to your needs
Protect your small business from cyber threats and data breaches with cyber insurance. Our licensed agents can help you get a customized quote through one of our trusted providers. You can also start a quote online.
Here are just a few of the many benefits of choosing Progressive Commercial to help you protect your small business:
Convenience
We know your time is valuable, so we've made it convenient for you to get all your business insurance needs in one place. Simply Call us or start a quote online, whether you need a single cyber insurance policy or a combination of coverages.
Adaptable to changes in your business
Your insurance needs will likely change over time, and we want to help you at each stage of your business's development. In addition to cyber coverage, we can help you find protection for your employees, business vehicles, property, and more.
Commercial experts
You might know us as the #1 commercial auto insurer* in America. What you might not know is that we have a team of in-house agents who are specially trained to help you find custom commercial coverages for all your business insurance needs.
Common questions about cyber insurance
Does general liability insurance cover cyber liability?
No. General liability typically covers physical losses, such as bodily injury and property damage, but not losses from cyber threats.
How do I know if I need cyber insurance?
Many businesses can benefit from cyber security insurance. Smaller businesses may lack the resources to adequately secure their data, which can make them an easy target, so it's important to be protected.
If your business handles or stores personal health information (PHI), personally identifiable information (PII), or other sensitive data like credit cards, cyber insurance may be a good idea.
What are some examples of data breaches and cyber attacks that a cyber insurance policy can cover?
Some examples of cyber attacks include phishing scams, data leaks, and software manipulation. In some cases, hackers might access a business's customer data, such as credit card information or Social Security numbers. Cyber insurance coverage can help your business manage these perils.
Does cyber insurance have a deductible?
Yes. A deductible is the fixed out-of-pocket cost you agree to pay before your coverage starts. You select a deductible amount when you purchase a policy. The deductible applies each time your cyber insurance covers a loss.
Start a cyber insurance quote and protect your small business today
