5 Facts About Cybersecurity Insurance

A 3D render of a padlock with binary data code. Digital and online security concept.

With several businesses relying on digital means to communicate and store information, cybersecurity has never been more important. How can you protect your data and your employees from the risks associated with the digital world? Coast General Insurance Brokers discusses the importance of having a cybersecurity insurance plan and five things you need to know about this type of coverage.

1. There are various types of coverage available.

Are you looking to protect against hackers stealing confidential information? Damaged or compromised data? Cybersecurity insurance can protect businesses and employees from these instances as well as cyber extortion and ransom. There are other types of coverage also available to third-parties that manage a company’s software or systems. Your insurance broker can provide details based on the coverage that is right for your specific business.

2. Cybersecurity insurance is still improving.

Cybersecurity policies are fairly new, and underwriters are trying to keep up with the digital demands of our tech-savvy world. Theft and intellectual property are two incidents that are typically not protected in this type of insurance policy, as underwriters cannot easily assess this type of risk. There are other ways you can protect your business’s reputation though. Discuss your concerns with your broker to ensure you have adequate coverage.

3. There is no one-size-fits-all option.

As with any insurance plan, there is not one solution that works well for all businesses. Purchasing a generic policy can put your business at a financial disadvantage, as you may be paying for inadequate or improper coverage. All businesses have varying levels of risk. Depending on how much your business relies on technology and what you use that technology for, your cybersecurity insurance needs will differ.

4. You should work with an experienced broker.

You wouldn’t purchase auto insurance from a real estate agent. It sounds impractical – and it is – because the real estate agent does not know the specific types of coverage you would need. After all, they are experts at selling homes. The same holds true for business insurance policies. Not all insurance brokers have the right experience to sell all types of policies. Coast General Insurance Brokers has over 40 years of experience assessing risk and selecting the right coverages for your business. Your protection is only as good as your policy, which is why our brokers strive to give you peace of mind when determining your insurance needs.

5. Premiums are a little bit pricier.

Unfortunately, premiums are more expensive when it comes to cybersecurity insurance policies because they pose a higher risk factor. Consider how prevalent data breaches are in today’s society. It seems there is always an issue with compromised security when we discuss data and information online. The best way to keep costs down is by implementing internal policies and security measures for your business. Take a proactive approach instead of a reactive one and make self-protection a priority.

Every business is unique, which means finding a broker who will pay attention your business’s specific needs is crucial. Contact Coast General Insurance Brokers today to find the best competitive insurance quotes, service, price, and value. Call (805) 644-4740 to speak with one of our friendly agents for a free quote today! We proudly serve Ventura County and all of California for your business insurance needs.

Posted on: October 1st, 2018 at 9:00am by Brenda Allison. Filed under: Cybersecurity Insurance
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