Best Cyber Insurance Add-Ons for Business Policies

In the modern digital age, a cyberattack is not a matter of if, but when. A standard business insurance policy may provide a limited amount of coverage for a data breach, but it will not provide the comprehensive protection you need to survive a sophisticated cyberattack. A standalone cyber insurance policy or a robust cyber insurance add-on to your business owner’s policy is a necessary safeguard for any business that handles sensitive client data or has a website.

The best cyber insurance add-ons go beyond the base policy and provide a more comprehensive level of protection. Here are a few of the best cyber insurance add-ons for business policies:

1. Data Breach and Privacy Liability Coverage
This is the most fundamental component of a cyber insurance policy. It covers the costs associated with a data breach in which a cybercriminal gains unauthorized access to your business’s sensitive data, such as a customer’s credit card number or a medical record. The coverage typically includes:

Forensic Investigation: The cost of hiring a cybersecurity expert to investigate the breach and to determine how the cybercriminal gained access to your system.

Notification Costs: The cost of notifying all of the affected individuals, which is a legal requirement in most states.

Credit Monitoring: The cost of providing credit monitoring to the affected individuals.

Legal Fees and Fines: The cost of a lawsuit from a third party and any regulatory fines.

2. Cyber Extortion and Ransomware Coverage
This is a vital add-on in an age when ransomware attacks are on the rise. A ransomware attack is a type of cyberattack in which a cybercriminal encrypts your business’s data and demands a ransom to unencrypt it. This coverage will cover the cost of the ransom, as well as the cost of the forensic investigation and the cost of repairing your business’s digital infrastructure.

It also often includes a cybersecurity professional to negotiate with the hacker and to ensure that the data is released after the ransom is paid.

3. Business Interruption Coverage (for Cyberattacks)
A standard business interruption policy will not cover a loss of income from a cyberattack, but a cyber insurance policy will. This add-on is designed to cover the loss of income a business experiences when it is forced to close temporarily due to a cyberattack or a system failure. It will cover your lost income, as well as your ongoing expenses, for the time you are out of business.

4. Social Engineering Fraud Coverage
Social engineering fraud is a type of fraud in which a cybercriminal uses a clever ruse to trick an employee into sending them money or a sensitive document. For example, a cybercriminal may send an email to an employee that looks like it is from the CEO of the company and that asks them to wire a large sum of money to a vendor. This coverage will protect your business from the financial loss that is the result of a social engineering fraud.

5. Public Relations and Reputation Management
A data breach can have a devastating impact on a business’s reputation. A cyber insurance policy may offer a rider that covers the cost of a public relations firm to help you manage the negative publicity that is the result of a data breach and to help you rebuild your brand’s reputation.

The best cyber insurance add-ons provide a comprehensive level of protection against the most common and devastating types of cyberattacks. By adding these endorsements to your business’s policy, you can ensure that you are prepared for the financial risks of an unforeseen event and that you can focus on building your business.