Cyber Insurance Applications and Renewals: Everything You Need to Know

Cyber insurance is crucial for small and medium-sized businesses. Unfortunately, coverage is not one-size-fits-all. The application and renewal process is tedious at best and downright incomprehensible at worst. Luckily, you don’t have to navigate it alone.

Integrated Technology offers cyber insurance counseling to educate business leaders on the latest coverage categories. We provide expert recommendations for each individual organization based on size, customer base, and other important determining factors. Our evaluation identifies shortcomings in your current coverage, addressing these deficiencies within the application and renewal process. Let’s take a look at some of the basics.

What is Cyber Insurance?

Cyber insurance protects businesses against computer-related crimes and losses. Depending on coverage type, this specialty insurance product safeguards businesses from losses attributed to a range of internet-based and IT-related risks. Insurance coverage types include first-party coverage, liability coverage, and technology errors and omissions coverage–all of which we will cover.

Why Your Business Needs Cyber Insurance

Small and mid-size businesses are appealing targets for cybercriminals. They possess sensitive information like customer data, and they typically lack adequate security infrastructure to protect it. Even minor cyber incidents disrupt business in significant ways. If your business computer system is compromised by a targeted or an accidental attack, your organization is liable. Not only could this cost a substantial amount of money, but it could also cost your reputation and, ultimately, your business.

Cyber insurance protects businesses against financial losses caused by cyber incidents, including data breaches and theft, system hacking, ransomware extortion payments and denial of service. For businesses that store sensitive information online or on a computer, insurance coverage is highly useful.

Types of Coverage

As cyber exposures evolve and incidents increase, insurers are developing more coverage categories. Currently, providers offer three primary categories of coverage:

  • First-party coverage provides financial assistance to help an insured business with recovery costs. A policy generally covers the investigation of the incident, the risk assessment of future cyber incidents, lost revenue from interrupted operations, ransomware payments, and customer notification costs.
  • Liability coverage protects a business when a third party sues the policyholder for damages as a result of a cyber incident. Whether your customers are individuals or other businesses, you might be liable to cover the damages if their information is compromised through a cyberattack on your company. Liability coverage protects businesses if such scenarios occur and generally pays for court fees, settlements, and regulatory fines for noncompliance.
  • Technology errors and omissions, or E&O, policies can protect businesses that provide technology services when cybersecurity insurance doesn’t provide coverage. Tech E&O kicks in if a business’s product or service results in a cyber incident that affects the third party directly. Technology E&O pays for items similar to that of cybersecurity liability insurance, such as legal fees, court costs, and judgments or settlements but only in covered circumstances relating to products or services.

Partner with Integrated Technology

The decision to protect your business with cyber insurance coverage directly and immediately improves your enterprise security. But between policy types and coverage amounts, how do you choose what’s right for your business? That’s where we come in.

Partnering with Integrated Technology alleviates the burden of cyber insurance and ensures your organization is equipped with the proper coverage.  Well-suited policies act as emergency funding mechanisms for businesses that are victimized by cybercrime and data breaches. With help from the experts at Integrated Technology, your organization can operate with confidence. 

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