Find an Agent


Get an Insurance Quote Now! Online or directly with a Member Agent.

Search Blog

Enter Keyword
Filter by Category

I’m a small business owner. Do I really need Cyber Insurance, and how do I know what coverages to purchase?

What you should know about the risk, coverages, and cost before you purchase cyber insurance.

Even as the frequency of cyber-attacks continues to rise, it is really the big data breaches that claim the headlines, leaving small business owners feeling like they are an unlikely target of cyber-attack. Yet, the truth is that 58% of malware attack victims are categorized as small businesses, and the frequency of those attacks to small businesses continues to rise

The rule of thumb used to be if a business collected and/or stored customer data, they were at risk. But recent attacks (Target, for example) have proven that small businesses may be a target merely because of their relationship with larger organizations. If your business experiences a cyber-attack or an accidental data breach it could prove to be extremely costly, with the potential to cause a closure or bankruptcy of your business. 

Beware the one-size-fits-all approach.


The amount and type of cyber coverage for one business could be either inadequate or too much for another. Determining the right amount and categories of coverages is best done with the guidance of an experienced insurance agent with access to a variety of cyber insurance products. 

Determining how much cyber insurance to buy should be based on an estimate of the potential losses, the likelihood that the event will occur, and how much data your business holds in its files. 

What's covered in a cyber policy can be as important as how much. 

Cyber insurance is a relative newcomer to the field of corporate general liability coverage. Because it is a newer product, forms and coverages have not yet been standardized. That lack of standardization can be confusing for a small business owner comparing two or more different cyber insurance packages. 

Here are some coverages to discuss with your insurance agent: 

Security and privacy liability (also known as “Cyber Liability”) is the true liability coverage that pays liability losses from claims made against the insured by various parties for losses from a failure to hinder or prevent unauthorized access to a computer network, failure to prevent physical theft, or loss of their private information. 

Privacy notification and crisis management expense coverage helps with the immediate response costs associated with a data breach. This may include hiring a forensic expert to determine the cause of the breach, notifying affected individuals, and offering credit monitoring services to these individuals. 

Cyber extortion covers the costs associated with a cyber extortion event and can include paying a ransom demand, hiring a computer security expert, and expenses to hire professionals to negotiate with the cyber criminals. 

Regulatory penalty cost coverage pays fines and penalties, and the cost of dealing with state and federal regulatory agencies, in the event of a data breach. 

Getting to ‘just right for you’ cyber coverage and pricing. 

An independent agent experienced in business insurance coverages, including cyber liability insurance, should be able to identify what your business does and doesn’t need, and use that information to build a customized policy. 

While cyber insurance may seem confusing, it is vitally important in protecting your business, and it’s better to prepare for the worst in this case. Contact your local SIAA member agency today to find out more on which cyber insurance plan is best for you.  

The information on this site is general in nature. Any description of coverage is necessarily simplified. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy. Nothing on this site alters the terms or conditions of any policies, nor does it provide any guarantees. You should read your specific policy for a complete description of coverage.

Share Blog Post


Comments (0)

Page 1 of 1First   Previous   Next   Last   


I’m a small business owner. Do I really need Cyber Insurance, and how do I know what coverages to purchase?

What you should know about the risk, coverages, and cost before you purchase cyber insurance.

5 Signs You May Need a (New) Insurance Agent

Worried your insurance agent may not be up to the task? Here are a few red flags that you may need a new one.

What is Firearms Liability Insurance and do I need it?

A look at the financial exposures when a law-abiding citizen is actually forced to use a gun to protect his/her self, a loved one, or their personal property

Is Primary Flood Insurance Enough? Maybe Not.

What is excess flood insurance and what you need to know about this unique product. 

Identity Theft: How to Protect and Detect

We have become so used to everyday conveniences - public Wi-Fi in our coffee shops, malls, airports and restaurants; banking in the palm of our hand and access to shopping at any hour. The on demand world we live in can be beneficial and time-saving, but can also severely damage our identity including our finances, credit and more. It’s crucial to have a plan in place for protecting your identity with active monitoring to detect any suspicious activity before it can cause long lasting effects.

Thanksgiving - a Time for Family, Turkey and… Household Fires?

The threat of fires in the kitchen triples on Thanksgiving Day. Keep your family, your home and your bird safe from harm.

Cyber-attacks and Data Breaches. Not Just for Big Businesses.

Did you know 60% of all cybercrime is directed at small businesses? In fact, According to the National Cyber Security Alliance, one in five small businesses falls victim to cybercrime each year. And of those, some 60 percent go out of business within six months after an attack.

Insurance Life Cycle Infographic

An infographic on the insurance you need for each life event

5 Ways to Lower Insurance Costs for Teens

Sticker Shock when insuring a teen driver is common, but how can you and your teen save?

What You Need To Know About a BOP

Are you a business owner? Are you, your business and employees properly insured? Learn what a BOP is and what insurance you need for your individual business.

Is umbrella insurance right for you?

Why put your assets at risk? With an umbrella policy you can protect yourself and your family with a minimal investment.

Moving soon? Why you need renters insurance!

Renters insurance covers more then just your personal belongings.

Do you have your auto insurance and home insurance through the same company? There’s a discount for that!

Get insurance discounts by bundling your home and auto coverage plus…

Why do I need to inventory my property?

Do you keep a home inventory list? These apps will help you file an insurance claim when unforeseen events occur.

Summer is in full swing – are you getting the most out of the boating season?

Boaters would argue that they take better care of their boats than do car owners of their vehicles. Are you one of them?

How does credit affect insurance rates?

Most auto and homeowners insurance companies use a type of creditscore, known as an insurance score or a credit-based insurance score, todetermine a policy cost and terms.

4 Must Know Insurance Terms

Insurance Terms 101: Why do I need to know insurance terms?

First time home buyer? Here are some tips for finding the best homeowners insurance.

Did you just buy your first home? You may have auto insurance and renters insurance, but now you need homeowners insurance. In fact, it's a requirement when purchasing a home.

Does Your Insurance Agent Have a Mobile App?

A well designed mobile app from your insurance agency can be a great tool to make your insurance life easier!

Do You Track and Document Your Home Improvements and Repairs? You Should!

Is your homeowner's policy up for renewal? Don't forget to track and document all your home improvements and repairs!

Page 1 of 4First   Previous   [1]  2  3  4  Next   Last   
Home | Why Us | Insurance Types | Blog | Terms | Privacy | Webmaster
© 2021 SIAA Marketing, LLC.