{"id":858,"date":"2018-12-18T10:53:54","date_gmt":"2018-12-18T10:53:54","guid":{"rendered":"https:\/\/www.insurancebee.com\/blog\/?p=858"},"modified":"2023-03-07T16:43:23","modified_gmt":"2023-03-07T16:43:23","slug":"common-questions-cyber-insurance","status":"publish","type":"post","link":"https:\/\/www.insurancebee.com\/blog\/common-questions-cyber-insurance","title":{"rendered":"Common questions about cyber insurance"},"content":{"rendered":"
\n
\"Common<\/figure>\n<\/div>\n\n\n

You know small businesses are more at risk of a cyber-attack? <\/p>\n\n\n\n

You also know small businesses are less likely to recover from an attack, right?<\/p>\n\n\n\n

Well, don\u2019t take our word for it. The stats speak for themselves:<\/p>\n\n\n\n

<\/p>\n\n\n\n

60% of small businesses hit by hackers go under within 6 months*.<\/p>\n\n\n\n

85% of cyber-attacks are on small businesses \u2013 that\u2019s around 4,000 a day.<\/p>\n\n\n\n

Scary, huh? Yet our recent research<\/a> reveals most small business owners still have no cyber coverage. Why? <\/p>\n\n\n\n

Seems there\u2019s some confusion about it. Like why SMB owners need cyber insurance, what it covers and how it protects your business.<\/p>\n\n\n\n

So, here are some answers to questions we\u2019re often asked:<\/p>\n\n\n\n

<\/p>\n\n\n\n

What is cyber insurance?<\/strong><\/h2>\n\n\n\n

In a word \u2013 survival.<\/p>\n\n\n\n

Cyber liability insurance<\/a>, data breach insurance, cyber security insurance\u2026 they\u2019re all names for the same thing. And they all do the same thing \u2013 keep your business in business <\/em>when it\u2019s been hacked. <\/p>\n\n\n\n

Because it\u2019s not the cyber-attack itself that\u2019s shutting-down so many small businesses. It\u2019s the cost of recovering from one. <\/p>\n\n\n\n

Just working out how the heck the hack happened can run into thousands of dollars. But the expenses don\u2019t stop there. <\/p>\n\n\n\n

There\u2019s the cost of data recovery and getting your website and systems up and running again; the PR you\u2019ll need to restore your reputation; the revenue you\u2019ll lose if the attack stopped you doing business; and the expense of telling your customers and employees. <\/p>\n\n\n\n

Worse, if there\u2019s a lawsuit against your firm because you lost client\u2019s data, you\u2019ll be footing the bill for legal fees and compensation,too.<\/p>\n\n\n\n

Cyber insurance covers these expenses, so you don\u2019t have to. It means you can carry on doing business, knowing you\u2019ll still have one.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Who needs cyber insurance?<\/strong><\/h2>\n\n\n\n

Do you store clients\u2019 data electronically? Use email? Have a\nwebsite? Accept credit or debit cards?<\/p>\n\n\n\n

If the answer\u2019s yes to any of these questions, you probably\nneed cyber insurance. <\/p>\n\n\n\n

However, if you think your business is completely protected from those hateful hackers swarming cyberspace, and your firm and customers will be ok if your IT system\u2019s compromised, that\u2019s great!<\/p>\n\n\n\n

<\/p>\n\n\n\n

What does cyber insurance cover?<\/strong><\/h2>\n\n\n\n

Cyber policies vary. But coverage may include:<\/p>\n\n\n\n