Investing in cyber liability insurance for your business is crucial in light of rising security breaches and our increasing reliance on data. A recent report from Risk Based Security notes that 36 billion records were breached in 2020, attributed primarily to malicious entities and misconfigured databases leading to exposure. As a result, investing in cyber insurance is vital for small business owners.
The best cyber insurance companies provide various coverage types for data breaches. They typically cover costs related to data restoration, legal fees, and regulatory fines. Investing in a cyber liability insurance policy can protect both the reputation of your business and sustain its financial future.
As one of the biggest insurance carriers worldwide, AIG is a good choice for healthcare professionals who deal with highly sensitive data. They have three tiers of cyber coverage suitable for different business sizes, and a 24/7 hotline for maximum customer satisfaction.
Some of their more advanced packages also offer additional coverage with services like business interruption coverage, bodily injury coverage, and property insurance coverage. While they do have a limited online claims management system, they have an excellent rating from A.M.
AXA is one of the most well-known cyber insurance providers in North America and a leading market share provider. They provide policies for data breach response and crisis management, business interruption, data recovery, cyber extortion, and more.
One particular strength is their flexible policies, which can accommodate businesses of all sizes. Because their partners include major industries, including tech, retail, and telecom, they are well versed in cyber insurance and have a highly competent team of claims experts.
For financial institutions, Travelers provides specialized policies for businesses that deal with diverse risks. However, they only offer cyber insurance coverage as a business insurance policy add-on, and the application process needs to be done over a call or in-person for a quote. Despite this, they have online claim reporting and different liability policies depending on the tier suitable for your business.
It's also important to note that some financial organizations are excluded from their premiums, including collection agencies, private equity firms, venture capital firms, or hedge funds.
If you're looking for cyber insurance for businesses in retail, one of the organizations that provides the best range of cyber risk services is The Hartford. This insurer provides good protection for cybersecurity threats, especially for businesses that deal with customer data and have multiple POS systems.
While they have online claim reporting, it can be difficult to get cost information for their insurance premiums online. In addition, they have no coverage in some U.S. states including Alaska and Hawaii. However, some advanced features include payment Card Industry (PCI) forensic investigation and additional crime insurance.
One of the best cyber insurers geared towards small businesses, Hiscox provides coverage against attacks on microbusinesses and sole proprietorships. For some states like California, Texas, and Florida, you can get online quotes on their cyber services.
For those on a budget, they provide discounts for multiple policies and home-based companies, which is useful if you're looking for network security liability insurance and protection from cyberattacks. They also provide flexible payment options and access to other services like employee training programs for added protection.
In the insurance industry, the top cyber insurance companies to do business with are typically the ones who have been in the industry for the longest. Some reputable insurers in this area include AIG and AXA. However, it's important to do research into your chosen insurer to ensure that you're getting the best coverage options for your cybersecurity needs.
For your company, the cost of cybersecurity insurance can vary greatly depending on your specific industry, level of coverage, level of risk, and whether you're purchasing other types of insurance from the parent company, including small business insurance or crime insurance. The average figure is $1,500 per year for $1 million in coverage.
This resource provides a checklist of what small companies should look for when choosing an insurance company and provider. It explains the differences between first-party and third-party coverage.
Investing in cyber insurance for your business might be a substantial cost, but it can help you recover from the substantial impact of a cyber attack. It's important to note that there are no one-size-fits-all cyber insurance companies, as individuals have unique business insurance needs and requirements.
As a result, it's best to look at different cybersecurity policies across insurance providers to find the ones that best suits you. For more help on choosing the best company and coverage plan for your cybersecurity needs, contact us today at Assured Standard.