Cybersecurity Insurance Requirements: Are You Covered?

Summary: This 3-minute article discusses what’s covered by cybersecurity insurance. Also, learn what is not covered during these challenging times and decide if you need more coverage. Contact DIGIGUARD CYBERSECURITY at 833-33-CYBER (833-332-9237) or visit www.DIGIGUARDsecurity.com to schedule a cyber risk analysis and discuss what your SMB needs to ensure you have the best small business cybersecurity.

Small business cybersecurity is often taken for granted. However, with the recent dramatic increase in remote-access work, cybercriminals are more actively pursuing SMB private data than ever. The new work model evolved so quickly that many small to midsized businesses are still scrambling to keep up with the growing incidences of cyber threats. Hackers view SMBs as the “low-hanging fruit” for cyberattacks because they often don’t prioritize cybersecurity. Also, data breaches can still happen even if a business has robust cybersecurity. That’s why the cyber insurance market is booming all over the world.

What Does Cyber Insurance Cover?

As hackers continue to find new attack methods, insuring against cyber risk has become complicated. Every company with an online presence is vulnerable to cyberattacks. So the questions are, “Does my SMB need cyber Insurance?” and “How much coverage do we need?”

The top four cyber insurance concerns are security, privacy, service, and operational risks. Those risks are protected by different policies covering:

• Network business interruption
• Network security
• Privacy liability
• Errors and omissions
• Media liability

Network Business Interruption

Most businesses are now dependent upon technology to drive their operations. Network business interruption insurance coverage provides coverage for certain losses incurred as a result of your network going down as a result of a cyberattack. Cyber insurance allows SMBs to recover monetary losses and other costs incurred due to a network being impacted. Network Business Interruption insurance also covers security breaches, and system failures, resulting from third-party hackers and human error.

Network Security Liability

Network Security Liability insurance is often more important coverage than Network Business liability insurance because it covers first-party costs incurred as a result of cyberattacks, including, malware attacks, ransomware, cyberextortion and email compromise. Other coverage includes:

• IT Forensics
• Notification of Breach to Customers
• Data Restoration
• Legal Expenses
• Public Relations expenses to restore confidence in the compromised business
• Credit Monitoring
• Negotiation of Ransom Demands

Privacy Liability

Unfortunately, cybersecurity breaches can often compromise employee and customer private data. Privacy Liability protects companies from the monetary exposure passed on to third parties. SMBs might be contractually obligated to protect client data or may be subject to governmental high compliance regulatory laws.

Errors and Omissions

A cyberattack can stop a business from fulfilling contractual obligations and deliveries to customers. Errors and Omissions liability insurance covers claims arising from fulfillment delays, cancellations and resulting monetary losses. Errors and Omissions coverage addresses accusations of contractual negligence or breach of contract due to cybercrime.

Media Liability

Media Liability insurance covers commodities such as intellectual property infringement resulting from a company's advertisements. These infringements could include online and printed ads and social media posts.

Cyber Insurance Exclusions - What’s Typically Not Covered

As with all insurance policies, some exclusions are important to understand.

Cyber Insurance policies generally do not cover the following:

• Future lost profits
• Devaluation as a result of Intellectual Property Breaches
• Also, International claims coverage varies country
• Times of War – War Exclusions are part of most cyber insurance policies and excludes coverage for damages from hostile or warlike actions by another country.

Unfortunately, so many cyber insurance claims over the past few years have led to some insurance providers losing money. As a result, policies have become more expensive and specific in their cyber insurance coverage.

Robust Cybersecurity Reduces Liability Risks

Cybersecurity for small to midsized businesses has become very complex. It is rarely a DIY affair. Keeping up with all the ongoing cyber threats requires expertise and innovative solutions provided by cybersecurity experts and locking down an SMB’s network to reduce the chances of any liability.

DIGIGUARD’s Innovative Solutions Protect SMBs From Cyberattacks

As your SMB grows, expands its network and adds more devices such as smart controls, wireless access and remote access, your network vulnerability grows, too. DIGIGUARD specializes in proactive cybersecurity and network security and has a wide array of solutions for home users and small to midsized businesses to defend against cyberattacks and other network data breaches. They are cybersecurity experts who can ensure your confidential personal, business and financial data have the best protection possible. Furthermore, they can help establish cybersecurity best practices and train your employees, so they do not inadvertently open your company to a cyberattack. That training will work in tandem with your Incident Response Plan so that everyone knows exactly what to do in the event of a cyberattack. DIGIGUARD’s services in cybersecurity are up-to-the-minute and cost-effective. They will enable SMB owners to concentrate on operating their businesses without fear of a data breach crippling their operations.

Contact DIGIGUARD CYBERSECURITY at 833-33-CYBER (833-332-9237) www.DIGIGUARDsecurity.com to discuss your IT needs and the best cyber protection for your SMB’s private network before you face a deadly cyberattack.