3 Types of Cyber Insurance You Need to Know About

By Published On: December 28, 2022

3 types of cyber insurance you need to know about

Businesses rely more than ever on technology to keep their ship afloat. To keep your business smooth sailing, you are going to need a team who can: troubleshoot tech disasters, provide solutions for the plethora of common cloud computing issues, understand the importance of data backups and recovery, know the ins and out of a business communications system, and most importantly provide a top-notch security package. Partners Plus has over 30 years of experience providing those services to various types of businesses.

As the world becomes more digitized and cybercrime increases, the need for cyber insurance is something businesses should not overlook. If your company handles, transmits, or stores sensitive data, you need to know about cyber insurance.

Cyber insurance is intended to protect businesses from the monetary losses arising from a cyber incident that could jeopardize their future. It covers financial losses caused by events such as data breaches, cyber theft, and ransomware.

Since small businesses often lack the resources or budgets of big corporations, cyber insurance can provide critical financial protection in the event of a cyberattack, helping them recover quickly.

Types of cyber insurance and what they cover

Although insurers may have their specific classifications, cyber insurance can be divided into three broad categories:

Cybertheft insurance

With more and more businesses storing sensitive data online, the risk of cyber theft is more prominent than ever. As a result, ensuring that your company is adequately insured against this growing threat is critical.

Cybertheft insurance protects businesses from financial losses caused by digital theft. This type of insurance can cover a variety of cybertheft scenarios, including first-party cybertheft, embezzlement scams, payroll redirection, and gift card scams.

Businesses of all sizes can be victims of cybertheft, and no business is too small to need cyber theft insurance. Therefore, even if there is a remote chance that your data or digital assets will be stolen, ensure you have cyber theft insurance for your business.

Cyber liability insurance

Cyber liability insurance includes third-party coverage for damages and losses, data breaches, regulatory penalties, credit monitoring, and lawsuits.

Cyber liability insurance is a vital tool for small businesses like yours because the financial ramifications of a cybersecurity breach can be more severe than you can handle. This does not mean you should panic right now; it simply means that having cyber liability insurance can help your business recover and move forward even after a breach, without being stunted.

Cyber extortion insurance/ransomware insurance

Cyber extortion insurance protects businesses against ransomware attacks. This type of insurance can help cover the cost of ransom payments, recovery expenses, business interruptions, and more. It can also provide access to a team of experts who can help with cyber extortion negotiations and forensics.

Keep in mind that an attack could still succeed even with the right cybersecurity solutions in place to protect your business. That’s why it’s critical to have cyber extortion insurance. It can help you recover from a ransomware attack and reduce the financial impact.

Let’s work together to ensure your success

 Cyber insurance is a complicated and ever-changing industry. Many factors can influence whether or not you qualify for a payout in the event of a cyberattack, and trying to remain compliant with your insurance policy can be difficult. Working with an IT service provider can help you better understand your options and ensure that you have adequate security in place, increasing your chances of receiving complete coverage.

About us

Partners Plus can provide excellent cloud computing solutions, a hand-tailored data backup and recovery schedule, state-of-the-art communications systems, and top-grade security packages. Contact Partners Plus today to learn how we can provide you with top-notch technological business support and security.

Bill Hogan - Partners Plus, Managed IT Services and IT Support

Bill Hogan is the Owner and President of Partners Plus. He has 40 years of experience in the technology industry, specifically IT support services. Bill has spoken at seminars all over the country about network management. Partners Plus was selected by PHL17 as the best Computer and Information Technology Support Company in the greater Philadelphia area in 2018.

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