Running a business means dealing with risk. Some risks are easy to see. Others happen behind a screen.
Email, online banking, cloud-based software, electronic payments and customer information have become part of everyday business. They make it easier to get things done, but they can also create exposures that traditional business insurance may not address.
October is Cybersecurity Awareness Month, so it’s a good time to ask a straightforward question: If something happened to your systems or data tomorrow, would you know what your insurance covers?
What does cyber insurance cover?
Cyber insurance is designed to help businesses respond to certain financial consequences associated with covered cyber incidents.
Depending on the policy and situation, coverage may help with costs associated with investigating an incident, restoring systems or data, notifying affected customers, managing the response, and certain liability claims.
Like any insurance, the details matter. Cyber policies can differ significantly in what they cover, their limits and their exclusions.
Isn’t cyber insurance mainly for big companies?
No business is too small to be a target, according to CISA.
Think about what you depend on every day:
- Customer and employee information
- Electronic payments
- Online banking
- Cloud-based software
- Remote access
- Computers or other connected systems
If you couldn’t access those systems, how long could you comfortably operate?
That’s the conversation worth having.
Doesn’t my regular business insurance cover this?
Don’t assume that it does.
Traditional commercial policies and cyber insurance are designed for different exposures. The best approach is to review what you have, understand what is and isn’t covered and identify any gaps.
Good cybersecurity doesn’t need to be complicated
CISA recommends four fundamental practices: recognizing phishing attempts, using strong passwords, requiring multifactor authentication and keeping software updated.
Those are practical steps any business can start working on.
Insurance isn’t a replacement for good cybersecurity, and good cybersecurity doesn’t eliminate every risk. The two work together.
At Davis & Towle Walnut Hill, we’re big believers in knowing what you’re buying before you need it. If cyber coverage is one of those things you’ve been meaning to look into, let’s talk it through. We’ll help you understand your options and determine what makes sense for your business.