Data breaches have become one of the most terrifying liabilities a company can face. Since high-profile incidents like those affecting Equifax and Microsoft, business owners are more vigilant than ever about protecting sensitive information — and rightfully so. Despite this vigilance, statistics suggest that data breaches may still be on the rise, with the Identity Theft Resource Center reporting a 17% increase from 2020 to 2021. In response to this threat, many insurers have rolled out insurance policies to cover losses from such exposures. Many business owners have questions about these policies, though — is it worth having cyber insurance? What should I look for in cyber insurance? Read on for the answers.
Find the Right Type
When you’re searching for the right cyber insurance, you first need to narrow down what type of coverage you need. There are a multitude of coverage options available, including policies tailored to cover the costs of business disruption and other policies that are designed to cover legal expenses stemming from lawsuits related to a data breach. Policies are thus typically designed to offer first-party or third-party coverage — meaning that business’ own expenses are covered, or the expenses incurred from others’ claim may be covered.
Find the Right Terms
With the various types of cyber liability insurance on the market, it’s important to find the policy with the best terms. Some policies, for example, contain a “duty to defend” clause, which obligates an insurer to defend any claim made against the policy. These clauses may also include a stipulation that the insurer selects the legal representative, though, which can be a problem for companies that retain their own counsel. Be sure to do your research on the terms of a policy before committing to it.
Find the Right Price
Of course, another important consideration is the price point of the policy you’re looking at. Premiums and deductibles can vary widely, and the price will depend on how comprehensive your coverage is, too. It’s important to remember, though, that 2021 saw data breach costs of $4.24 million — making the value of protection more apparent than ever. The cost of a cyber insurance policy may be the best investment you can make for your company.
Find the Right Insurer
The most important criteria of all when shopping for a cyber insurance policy is the insurer you choose to partner with. You want to buy into a policy that’s backed by underwriters who understand the threats and exposures your business faces on a daily basis. Hacking, identity theft, and compromised credentials are just a few of the liabilities you must contend with. You need an insurer who will partner with you to fight against these risks and help you keep your company safe.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
