What Is Cybersecurity Insurance, and Does Your Business Need It?

Cyber incidents can disrupt your business. Some of these instances could be ransomware attacks or data breaches. The financial damage can add up fast, and that’s where cybersecurity insurance comes in.

Many businesses already have this coverage as part of their general business insurance, but not all know what it actually includes, or if it’s enough.

Here’s what you should know.

What Cybersecurity Insurance Covers

First-Party Coverage (covers direct losses to your business):

• Data breach response: forensic investigation, customer notifications, credit monitoring

• Business interruption: coverage for lost revenue during system downtime

• Cyber extortion: ransom payments and negotiation support

• Data recovery: costs to restore lost or compromised data

• Crisis management: PR and communication efforts to control reputational damage

Third-Party Coverage (covers claims made against your business):

• Legal defense and settlements for lawsuits related to data exposure

• Regulatory fines and penalties, when allowed by law

• Liability for data loss that affects customers or partners

Why It Matters

Cybersecurity insurance isn’t a replacement for strong security practices, but it’s a critical safety net.

• Cyberattacks are on the rise, especially for small and mid-sized businesses

• A single breach can cause weeks of downtime and thousands in lost revenue

• Insurance can help cover costs that would otherwise be difficult to recover from

• Many policies include access to expert incident response teams and legal support

Want to Learn More?

We can help you assess your risks, tighten up your protections, and make sure your systems are in good shape, regardless of whether you have cybersecurity insurance.

Contact us to start the conversation.