Small businesses have several options available under the banner of “Cyber Insurance”. A couple of caveats:

• Some insurance carriers allow for coverage to be purchased a la carte, while others sell the coverage as a package.
• Scope of coverage and forms vary widely between companies and their programs.
• Cheap does not equal better!

From a high level, the coverages can be broken down into the following major and sub categories:

• Third Party Coverages (pays for damages to people other than the named insured on the policy)
• Costs of hiring an attorney to defend against lawsuits related to a breach of private client information.
• Settlements as a result of that breach of private information.
• Costs for the defense of client identities.
• Costs for the restoration of client identities.
• In some cases payment for government fines and penalties.
• First Party Coverages (payments to the named insured for damages)
• Costs the insured incurs to notify their clients that their information was compromised.
• Payment for costs associated with credit monitoring services for customers whose data was breached.
• Costs to repair or restore the reputation of the insured
• Loss of income the business might incur as they work through the complications of a security breach.
• Payment for a cyber extortionist holding the business hostage.

This is not an exhaustive list. There are other potential coverage options available through cyber insurance programs. In addition, they may be labeled/called something slightly different with each plan. Companies who excel at cyber coverage offer the greatest flexibility in fashioning a solution for your business. Deciphering your choices and finding the best value is not an easy or necessarily intuitive effort. How do you find the best cyber insurance solution? Contact a independent insurance agency in your locale that works with businesses as a matter of their focus. Have additional small business insurance questions? We LOVE to help! please feel welcome to call us at 607-382-1235.
This article appeared originally at https://www.quora.com/What-does-cyber-insurance-cover-for-small-businesses