Your Current Coverage
Will your current business liability insurance policy cover you in the event of a cyber attack? Probably not. If an insurance policy does cover some cyber areas, these policies tend to come with large cracks. In other words, you might be covered for some types of attacks, but not for all or most types of attacks. Unfortunately, many people discover that insurance policies are full of holes once it is too late.
Types of Cyber Insurance
Cyber insurance rates and coverage coincide with the type of company that you are running. For example, an ecommerce company that stores client credit card information is considered a much higher risk than a company that doesn't store any kind of personal data. Some companies may have a much higher premium than other companies, so it will pay to shop around.
But, there are some ways to reduce cyber insurance costs even if you are a “high risk” company.
How to Reduce Cyber Insurance Costs
Make sure that your site is protected before you shop for insurance. This tactic can be compared to the “good driver” tactic when it comes to car insurance. If you prove that you're a good driver (or a responsible cyber company owner), you pay less. Consider tough password protection, security companies, and measures to prevent hackers from breaking in.
Hire a hacker. Hackers can be a real asset when it comes to risk assessment. Ask any hacker you hire if they can find problems with your business, and show your potential insurance company that you have all your bases covered.
Secure your network. Consider firewalls and other protective programs that will save your site from attacks.
But, Do you Need It?
Well, yes. You need cyber insurance if you store personal or important information. You also need this type of insurance if your entire business is cyber-based. Otherwise, you will have nowhere to turn if your site is hacked and valuable information is stolen, you run the risk of being sued, or all of your business profits suddenly go up in smoke.
Where can you get it? Most business insurance policies now include some type of cyber insurance for any kind of Internet business. Keep in mind that some types of businesses (as mentioned above) are considered high risk while others are not. As with any other insurance policy, it's a good idea to shop around and compare rates.
Just remember: setting up security measures before you purchase insurance will help lower those costs. Got more questions? Ask away! And, whatever you do, don't expect the cheap hosting company you've signed up with to protect your site for you! Cyber insurance exists, so make sure to look into it in order to protect your business!