Cyber Insurance Broker Guide for Business Owners

As a business owner, you're likely aware of the increasing risks of cyber attacks and data breaches. Cyber insurance can provide a financial safety net in the event of a cyber incident, but navigating the complex world of cyber insurance can be overwhelming.

A cyber insurance broker can help you find the right policy for your business. According to a recent survey, 80% of businesses that experienced a cyber attack went out of business within a year.

The cost of a cyber insurance policy can vary greatly depending on the type of business and the level of risk. For example, a small e-commerce business may pay around $1,000 per year for a basic policy, while a large financial institution may pay tens of thousands of dollars.

A good cyber insurance broker will work with you to understand your business's specific needs and risks, and help you find a policy that fits your budget.

Cyber insurance is critical to an organization's overall cyber risk management strategy, providing protection against financial risk posed by cyber security threats such as ransomware and data breaches.

Cyber insurance helps businesses recover from financial losses following cyberattacks and data breaches, serving as a safety net for the digital age. It's increasingly important for businesses operating today.

Cyber insurance can respond to a range of cyber risks, including data breaches, malware attacks, and business account or email compromises. This coverage will also respond to cyber liability claims and certain expenses related to an attack or breach.

Some of the costs that cyber insurance can cover include:

In addition to these costs, cyber insurance may also provide access to a panel of top-tier breach coaches and other service providers to help with recovery and mitigation efforts.

You need cyber insurance coverage because the cost of cyber crime is expected to increase to $23.84 trillion by 2027, up from $8.44 trillion in 2022. This staggering figure should be a wake-up call for any business owner.

The average cost of a ransomware attack was $4.54 million in 2022, not counting the cost of the ransom itself. This can be a devastating blow to a small business.

The global cost of cyber crime is projected to rise dramatically, and the consequences of a cyberattack can be severe. You can't afford to take that risk.

Here are some key statistics that illustrate the importance of cyber insurance coverage:

Cyber insurance options can be tailored to fit your small business's specific needs. A Business Owners Policy (BOP) can provide comprehensive protection for your business and property.

Cyber insurance add-on coverage can be added to a BOP or general liability policy to provide additional protection against cyber threats. This type of coverage can help with first-party response expenses, such as forensic IT review, legal review, and notification of affected individuals.

The cost of cyber insurance add-on coverage varies, but base coverage of $50,000 for response expenses and $50,000 of defense liability typically costs a small business between $85 and $200 annually.

There are two main types of cyber insurance: first-party coverage and third-party coverage. First-party coverage pays for your business's expenses to recover after a cyberattack, while third-party coverage pays for your legal expenses if a client files a lawsuit against your business.

Here are some examples of what's covered under first-party and third-party coverage:

If your business handles sensitive information like credit card numbers or medical records, cyber insurance is worth considering. Cyber liability insurance can pay for expenses like data recovery, regulatory fines, and lawsuits if your business is hit with a cyberattack.

Data breach coverage is a type of insurance that helps protect your business from the financial fallout of a data security breach.

Data breach insurance can be purchased as an add-on to a general liability, professional liability, or business owners policy (BOP), which is also called property & liability insurance. It helps cover costs related to system hacks or data security breaches in which sensitive information has been stolen and fraud has occurred or there is a reasonable expectation that it might occur.

The costs of a data breach can be steep, with the average breach costing about $150 per stolen record of personal identifiable information. If you store thousands of records, you may want to buy higher policy limits to ensure you're adequately protected.

A data breach is a serious issue that can happen to anyone, including small businesses and individuals. It occurs when an unauthorized person gains access to sensitive data.

Data breaches often involve a system hack or data security breach in which sensitive information has been stolen. This can include personal or financial information.

If you store sensitive data, you're at risk of a data breach. This can happen even if you have the best security measures in place.

Data breach insurance and cyber insurance can help cover the costs of a data breach. This type of insurance can be purchased as an add-on to a general liability, professional liability, or business owners policy.

The costs of a data breach can add up quickly, including incident response expenses like informational materials and help lines.

Data security breaches can be devastating for businesses that store sensitive data. If you store sensitive data, a data security breach involves an unauthorized person gaining access to that information.

The average cost of a data breach is about $150 per stolen record of personal identifiable information. This can add up quickly if you store thousands of records.

Businesses that handle information like Social Security numbers, credit card numbers, or medical records need cyber insurance to protect themselves from data breaches. This type of insurance can help cover costs related to system hacks or data security breaches.

Here are some examples of costs that cyber insurance can cover:

It's essential to consider the amount of personal identifiable information your company stores when determining the right policy limits. If you store thousands of records, you may want to buy higher policy limits to ensure you're adequately protected.

Cyber insurance add-on coverage can cost a small business between $85 and $200 annually for base coverage of $50,000 for response expenses and $50,000 of defense liability.

The cost of cyber insurance add-on coverage depends on multiple factors, including business activities, limit, and deductible. This means that the cost can vary depending on your specific business needs.

A cyber insurance add-on coverage of up to $1,000,000 is available for small businesses, but the premiums will depend on these factors.

The median cost of cyber liability insurance for small business owners is $145 a month, according to Insureon. This cost can vary depending on several factors, including your company's exposure to cyber risk, the amount of insurance coverage needed, revenue, network security, and claims history.

Cyber liability insurance policies can be added to a business owners policy or be a standalone policy with higher limits.

Here's a breakdown of the types of coverage available:

This table shows the types of coverage available under cyber insurance, including first-party and third-party expenses.