A cybersecurity plan typically consists of consultants, software firewalls, and related systems that help small and medium-sized companies (SMBs) establish protective systems for fending off cyberattacks. These interventions cost SMBs between $5000 and $7000 annually. These mechanisms are updated and maintained at an additional cost of $3,000 to $5,000 per year for small businesses. It is still important to develop a response protocol to these attacks as well as build defenses against these attacks regardless of these expenditures.
Who Needs Cyber Insurance?
SMBs benefit from cyber insurance in a variety of ways:
In terms of cybersecurity response strategies, cybersecurity insurance is a relatively inexpensive component. Spending thousands of dollars on defensive technology without insuring its losses and liabilities resulting from that technology's failure is a waste of money. The cost of cybersecurity insurance for small business can be as low as $200 per year. The insurance is worth buying because the premiums are low and the benefits are high.
What Does Cyber Insurance Cover?
Trava offers base packages for common SMB needs including coverage for security breach expenses, extortion threats, replacement or restoration of electronic data, business income and extra expenses, public relations expenses, and security breach liability.
Trava also offers endorsements for computer and funds transfer fraud, hardware replacement, post-breach remediation, ransom payments, social engineering, and telecommunications fraud.
What Does Cyber Insurance Not Cover?
Cybersecurity insurance provides businesses with financial protection for their digital assets, but it does not cover all possible risks and costs. The following are some things that a typical cybersecurity insurance policy might not cover:
- Upgrades: Your policy may not cover upgrades made after a data breach to prevent future incidents.
- Future Profits: Most cyber policies don't cover potential future profits lost due to reputational damage caused by a breach.
- Decreased Valuation: A cyber insurance policy may not cover a loss if a cyber criminal steals intellectual property that decreases the company's value.
Cyber Insurance Benefits
In addition to its relative inexpensiveness as part of an overall cybersecurity response strategy, the following are cyber insurance benefits:
- The difference between staying in business and filing for bankruptcy can be determined by a cyber insurance policy.
- The reputation of an SMB is its most valuable asset. A cyber insurance policy will enable an SMB to respond quickly and without damaging its reputation among customers and clients in the event of a cyberattack.
- An SMB that suffers a ransomware attack can be covered by a cyber insurance policy.
- It is possible to compensate third-party victims for their losses through cybersecurity insurance