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The Easy SMB Guide to Cyber Insurance

With more than half of cyberattacks targeting small businesses, maximizing your defenses is mission-critical. Cyber insurance is one way to protect yourself from the large financial costs associated with a successful data breach or security incident. In this article, we’ll discuss some key things to remember for small businesses looking to purchase cyber insurance.

1. Cyber Insurance Can’t Protect Your Applications, Networks, Infrastructure, and Data

Cyber liability insurance isn’t a magic bullet to a fully protected business. To apply for and successfully obtain cyber insurance, your company must have robust cybersecurity measures in place – these will depend on the policy you are trying to obtain. But without them, your organization is simply too risky for an insurer to cover. Once you have the right structures in place, cyber insurance provides an extra layer of financial security and peace of mind if the worst happens.

You wouldn’t skip your seatbelt or run red lights just because you have car insurance. You wouldn’t leave the front door unlocked just because you have homeowner’s insurance. Similarly, think of cyber insurance as your last line of defense – not your first.

2. You’ll Need Comprehensive Cybersecurity Insurance Coverage

Many business owners wrongly assume their general liability insurance policy covers cybersecurity incidents. In fact, most do not. If you aren’t certain your existing policy covers a range of cybersecurity risks, you’ll need cyber liability insurance. Cyber insurance protection varies but typically includes cyber extortion, data loss, computer fraud, interruption of revenue due to breach, loss of transferred funds, and digital asset management. Cyber insurance may be more affordable than you think, and keep in mind that ransomware demands can be extremely high.

Small businesses are also a prime target for cybercriminals, because SMBs often have less time and resources to dedicate to cybersecurity compared to larger organizations.

3. Understand the Difference Between First-Party and Third-Party Cyber Insurance

First-party cybersecurity insurance covers breaches on your own network, while third-party insurance covers vendors, applications, or service providers who experience a data breach that affects you. Both are important types of protection, as you never know where an attack will come from. Plus, third-party cybersecurity insurance can help protect you from lawsuits levied by customers or employees who hold you responsible.

4. Work with a Leading Provider to Maximize Defensibility

To obtain cyber insurance, your business needs a comprehensive cybersecurity strategy that helps protect your systems, data, and network. TPx is a one-stop-shop solution for small businesses to implement crucial cybersecurity measures like email security, managed firewalls, employee security awareness training, endpoint management, and more at an affordable cost. Not only does this make you more qualified for cyber insurance, but it can prevent successful attacks and breaches in the first place.

Get Cyber Insurance with Help from TPx

Cyber insurance is rapidly becoming a non-negotiable. Trust the SMB experts at TPx to help you get and keep coverage while maximizing your defensibility to cyberattacks. Get in touch to get started.

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