In an increasingly online world, cybersecurity is becoming more important than ever. Although it can seem overwhelming trying to keep up with the pace of changing technology, failing to do so can put your business at risk. Cybersecurity insurance is one way to protect your assets and defend against attacks. But if you’ve never considered it for your business, it can seem like an unnecessary cost. Here’s a quick guide to this type of coverage and why it’s a valuable tool for limiting your risk exposure.

What is Cybersecurity Insurance?

Cybersecurity insurance protects your business against attacks and crimes through computer-related avenues. It can include direct actions like malware or phishing that target you and your employees, or it can include misplaced or stolen hardware containing confidential or valuable data. In the case of these inevitable events, cybersecurity can cover your losses and prevent long-term damage to your finances.

The unfortunate truth is that cyber-attacks are becoming more and more prevalent each year. In fact, small businesses are more likely to be targeted by cyber-attacks than large-scale organizations, making it more important than ever to find ways to protect your assets.

Do I Need Cybersecurity Insurance?

The short answer is yes. You need cybersecurity insurance if your business does any of the following:

  • Uses devices such as computers, laptops, or smartphones
  • Manages or accepts credit cards or other digital payments
  • Stores customer information
  • Keeps medical records or financial data
  • Stores any sensitive data in a cloud-based application

The chances are very high that your business touches at least one of the above. With virtually every business relying on technology these days, cybersecurity insurance is a must, no matter your scale or industry.

What’s Covered By Cybersecurity Insurance?

Cybersecurity insurance covers a wide range of factors – and in fact, the wider the coverage, the better. Here are some of the main things typically covered by cybersecurity insurance:

  • Cyber extortion: Cyber extortion is one of the most costly and stressful types of attacks experienced by businesses. It involves withholding digital data or assets with threats to shut down key systems or release information if a ransom isn’t paid. Insurance covers the cost of response and financial payments associated with cyber extortion.
  • Breaches: Insurance typically covers costs associated with breaches in cybersecurity – and there can be many costs associated with breaches such as identifying the breach, notifying affected individuals, managing crises, protecting credit, releasing statements, and more.
  • Interruptions: Cyber-attacks can cause significant interruptions in your business, especially when it’s network-related. Cybersecurity insurance covers lost income during these interruptions, meaning you don’t miss out on valuable revenue.
  • Data recovery: Recovering lost or stolen data is costly. Cybersecurity insurance covers the costs associated with recovering, replacing, or repairing assets lost or stolen from a cyber-attack.
  • Privacy protection: When handling personal or confidential information, mishandling privacy can result in costly claims. Cybersecurity insurance covers the costs of defending or resolving claims related to network security failure, negligence, regulatory investigations, and more.

Cyber Security Insurance With OVD

At OVD Insurance, we offer everything your business needs to protect against costly cyber-attacks. We can help you find the right coverage for your specific industry and unique risks. To learn more, contact us today.