Small Business Cyber Insurance: A Guide
Picking cyber insurance for your business can be time-consuming and challenging. There are no policy and coverage standards across different insurance companies, and different pricing structures can be overwhelming.
If you're looking to get cyber insurance from one of the many different insurance companies out there, here are a few steps to help you through the process.
1. Assess your own risk profile
Your first step when considering a cyber insurance policy would be to understand your own risk as a business and what threats you may be vulnerable to. Here are some questions you should ask to identify your cyber risks:
· What type of information do you have, including customer data, payment card information, and sales data?
· Have you been the target of a breach in the past?
· How protections have you implemented across your business?
As a part of the application process for cyber insurance, you are often required to have certain protections in place, such as multi-factor authentication and anti-phishing training for all employees. This helps insurance companies determine how risky your business is; the stronger your protections, the lower your risk.
2. Compare coverage price with business value
You should pick a coverage plan that corresponds to the value of the data you want to protect. Here are a few things you should know for comparison:
· The annual cybersecurity premium for small businesses ranges from $1,000 to $7,500 on average
· The average cyberattack costs a business $4 million
· The coverage limit of a cyber insurance typically starts at $250,000 but could increase to millions of dollars
However, the true cost of an attack on your business could vary greatly depending on how many customers you have, what kind of data you store, and how much your business relies on technology.
3. Understand your policy
No two policies are the same. However, the specific terms of a policy can involve a lot of jargon. As a business owner, you may also be too busy to spend time evaluating different insurance companies.
As a shortcut, you may want to limit your choices to only the best-rated companies – in other words, A+ rated carriers.
If you want to easily get cyber insurance for your business in minutes without spending too much time on each of the steps above, 1Fort’s insurance and security solution could help. Instead of spending hours or days determining your own risk profile, getting security controls, and reading through different policies, you can leave it all to 1Fort.
1Fort only asks you a few questions to understand your business better, then provides a simple security solution that instantly gets you protected and covered with insurance. Our standard plan also defaults to $1 million in coverage, though you could customize this amount easily by reaching out to us.
Still unsure? Schedule some time with our team and we’ll walk you through your options!