As an insurance agent I am commonly told by small businesses that they are too small to have a cyber-attack, and if they did, that their POS system would cover any losses related to the breach. The truth is that cyber claims are on the rise, and small businesses may be seen as an easy target to cyber criminals. Cyber-attacks also come in many forms and POS system providers may offer little or no assistance in the case of a loss.
Every business should consider purchasing a cyber liability policy. AmTrust Financial recently stated “Cyber incidents are considered the #1 emerging risk in the near future”, and in a 2019 study by Hiscox Insurance, the average cost of a cyber-attack was found to be around $200,000. These costs can cripple a small business.
Cyber liability insurance should be selected carefully as not all policies are equal. ISO (Insurance Services Office Inc.) has created standardized forms that are starting to be used more frequently, but often insurance providers write coverage on their own forms that may limit or expand coverage. Total limits and sub-limits should be reviewed carefully to verify that they meet the needs of each business prior to purchase.
Coverages Offered on ISO Form CY 00 01 01 18
- Security Breach
a. Forensics
b. Notification
c. Overtime Salaries
d. Call Center
e. Post-event Monitoring
f. Other Expenses (With Written Consent)
- Extortion Threats (Ransomware)
- Replacement or Restoration of Electronic Data
- Business Income and Extra Expense
- Public Relations Expense
- Security Breach Liability
Additional Common Coverages Include
- PCI Fines & Assessments
- Technology Errors & Omissions
- Media Liability
- Social Engineering
- Telecommunications Fraud
- Funds Transfer Fraud
- Phishing Loss
- Corporate Identity Theft Loss
- Bodily Injury and Property Damage
For more information on how to protect your small business from cyber attack losses, contact Beehive Insurance today.
