I cannot stress this point enough - Cyber Liability Insurance is the most underbought and undervalued insurance coverage in our industry to date. You might find yourself asking why. Well, the answer is fairly simple if we take the time to consider how business is done in 2020. How do you make payments to various vendors? EFT, credit cards, various other methods of online payment? These are very basic exposures but there are plenty more complex issues to contemplate (which we will do in a later post). Your average business owners, general liability or property insurance policies do not contemplate such exposures. Some insurance companies do offer this coverage via endorsement to those policies, but generally with low limits and high deductibles. Coverage is also much more restrictive than a Cyber Liability policy written specifically for that purpose.
With the recent outbreak of Covid-19, people are beginning to understand how this coverage is more important now than ever. Not only because of the reasons outlined above, but because of an increased work from home exposure. All Cyber Liability policies are written differently, so you really need to understand if your policy covers the specific exposures your business has.
For example, my agency partners with several brokers who place this business for us on the Home/Condo Associations we insure. Most of the board members for these associations work from home on occasion. For these boards we place their insurance with a carrier who covers a work from home exposure on their Cyber Liability insurance policy. For those that do not have this exposure, we present a different carrier.
The bottom line is that as a business owner you need to talk to your insurance agent about obtaining Cyber Liability insurance. Most policies will offer a small business $1,000,000 of coverage for $650-$1,200. Talk to your agent today and make sure you don’t have any unnecessary gaps in your insurance program.
Written by Robbie Korth
If you have any questions, please feel free to contact Robbie Korth at email@example.com.