In 2018, the average cost of a cyber attack was $1.1 million. (1)
Cyber incidents like data breach and ransom ware come with several direct and indirect costs. There are examples of companies shutting entirely after a cyber-attack because of the loss they suffered. This is why more companies are now investing in cyber risk insurance.
Often, many people ask who needs cyber risk insurance.
The simple answer is every business who has some kind of digital footprint.
Of course, large companies that have their entire operations running online almost essentially require cyber security insurance. For instance, a food delivery service stores customers’ highly sensitive data, like credit card details. They are also more prone to cyber-attacks. So, they must have cyber risk insurance.
But even those that have a smaller establishment, they should invest in a cyber-security insurance as well. As long as they are collecting user data (even something as basic as their name and email address), cyber risk insurance is a need. Because you never know when there could be a data breach and those individuals whose data got breached files a lawsuit against your business.
Of course, the kind of coverage one gets would vary on their needs, vulnerabilities and risk exposures. A company that handles sensitive data and is more prone to cyber risks, they should have a wider coverage. Similarly, those who are not at a higher risk and they handle very little customer data, their insurance coverage can be low.
There are many little and big factors that influence what kind of cyber risk insurance plan you should get. Do proper evaluation on your end to establish your unique needs, requirements, and risk exposures. Connect with an experienced (and licensed) insurance broker and get their help. They can help you realize your definite needs. Accordingly, they can assist you in finding the best cyber risk insurance plan from a top insurer that provides you with maximum coverage.
Insurance brokers can also help you buy other policies like E & O insurance; just like cyber security insurance, errors and omissions policy is equally important.
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Of course, the type of business insurance policies you should buy depends on the kind of business you have. Every business, after all, has its own unique needs and requirements.
But that said, there are a few types of insurance policies that you should have anyway to ensure maximum protection and prosperity to your business. In that context, here are three business insurance every small and medium-size business should ideally have:
These are four must-have insurance policies every SME should ideally have. Indeed, there are many other types that you should explore as well. As mentioned earlier, different businesses have different needs. Depending on your need, you may need to buy other types of insurance as well. The first step is determining your risks and then figuring out what insurance is the right fit for you. Thereon, explore different plans from reputed insurers and pick one that suits your requirement and budget. Consider getting help from a licensed insurance broker. They can help you with this process, assisting you in making the right decision and even customizing your insurance plan per your needs. |
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