Owning a small business is no small feat. We know that monetary assets are just the beginning of what goes into running a successful business. If you’ve started a business from the ground up, you understand it is much more than its assessed value. It’s your hopes and dreams, sacrifices, blood, sweat and tears. For many small businesses, your work is an extension of yourself, and your customers are like family.
You likely have health insurance to protect yourself and your loved ones and home and auto insurance to protect your house and vehicles. You should also have commercial insurance to protect your business. Industries such as the trades, restaurants, condo corporations, and retail locations will also have specialized policies to protect their unique needs. With so much business taking place online, many businesses also invest in cyber insurance to protect their business and customers.
Who Is Cyber Insurance For?
It’s easy to think that you don’t need cyber insurance, especially for small businesses not based online. However, ‘cyber’ refers to all things computer and network related, not just internet-based. If you share any information over computer networks, whether to accounting firms, lawyers, or even print companies, you may be at risk of cyber attack.
Retail or wholesale companies that accept online or offline credit card transactions may also be at risk. Manufacturing companies need to protect their proprietary information, which is often stored and shared on computers, including information that is often a target for cybercriminals.
Any company that stores information about its employees on a device connected to a network is at risk for cyber attacks. Even realty services such as property managers, condominium corporations, building owners, or small-scale rentals are targets for cyber events. Cyber liability insurance can benefit you if you use a computer for any part of your small business.
Different Types of Cyber Insurance Coverage
There are two main types of cyber insurance: third-party liability coverage and first-party liability coverage.
First-Party Liability Coverage vs. Third-Party Liability Coverage
First-party liability coverage protects your company in the case of cyber incidents, such as a ransomware attack or a cyber breach. Third-party liability coverage protects you in the event an outside source takes legal action against your company in the event of a security breach.
Data Breaches and Cyber-Attacks
In the case of both first-party and third-party liability coverage, cyber insurance covers data breaches and cyber-attacks. A data breach is when information is accessed without permission. This includes access to payment information, personal health information, or even social insurance numbers. This sensitive data may be used by the perpetrator or sold to another third party.
Cyber attacks occur when damage is done to your data or computer systems, including your personal computer or smartphone. A cyber-attack aims to steal, alter, or destroy specific information or operating systems.
Protecting Personal Information
One of the biggest cyber risks to any business is a data breach or a data leak. Anytime someone gains access to your information without permission, you have suffered a data breach. Anytime unauthorized access occurs, an investigation is needed to determine the extent of the breach and how to prevent any future incidents. There is also a responsibility to notify everyone involved of the potential or confirmed breach and different protocols for necessary actions.
These responses can be costly in and of themselves, as well as interrupting business. Having cyber insurance coverage to protect you in case of a data breach can keep your business running while investigations and corrective actions take place.
Protecting Business Assets and Proprietary Information
A data breach is, of course, very serious. However, no damage is done to your information or computer systems. Computer viruses, or cyber terrorism, on the other hand, actively attack electronic data and systems. It is usually impossible to do business as usual if your data has been stolen or destroyed or your operating systems are no longer operational. Not only does this affect the operation of your business, but high costs are associated with data recovery and system repairs.
Adding to the cost of lost business, these expenses can easily bankrupt a small business. Having insurance to cover the costs of equipment repairs or replacement and data recovery, as well as lost business, may be vital to your recovery from such an attack.
When adding cyber insurance to your coverage, you can choose to add just one or both of these types of coverage. Combining both insurance policies together will ensure that you have the most comprehensive coverage. Depending on your business, this may be an easy decision. You’ll want optimal coverage if you have a digital-based business with complicated networking. If you have limited employees or minimal computer use, you may be less sure.
Choosing the Right Insurance Policy for Your Business
Talk to one of our knowledgeable insurance brokers to know whether you have the coverage you need. They’ll make sure they understand your business and business risks so that you get the right coverage. Insurance companies have been helping small businesses like yours for a long time and are constantly evolving to continue to meet your needs. Cyber insurance is one example of how coverage is growing to meet modern needs.
Technology is constantly changing, and most businesses would be lost without it. The challenge many business owners face today is learning how to use technology to their best advantage while also protecting themselves from its ever-increasing risks. Cornerstone Insurance helps you find the right coverage so you can focus on your growing business and trust that you are protected from any potential cyber-attacks.
Cybersecurity Insurance and Commercial Insurance in Edmonton
When you build something from the ground up, you want to do everything you can to protect it. At Cornerstone Insurance, we understand what your business means to you. And just as your business was tailor-made by you, your insurance should be tailor-made for you. Serving Edmonton and its surrounding areas, our brokers work with reputable Canadian insurance companies to ensure you have the best coverage for the best price.