In Florida, $36,870,506,000 in commercial insurance claims were paid in 2019. Some of those had to do with cyber liability exposures. Your business may not seem like it could be at risk, but all it takes is one click to be compromised.
Fortunately, an independent insurance agent can help. With access to multiple markets, you'll save big. Get connected with a local adviser for tailored protection.
What Is Cyber Liability Insurance?
Cyber liability insurance in Florida will protect your business against a cyberattack. Once a predator has compromised your system, you are vulnerable. Sensitive data and important documents could be stolen in the blink of an eye.
Not to mention if your employees' or clients' information is accessed. Aside from your business potentially having to rebuild, you'll now be on the hook for any damages. When you have a cyber liability policy, you'll have coverage for defense costs and more.
Cyber Liability Insurance Cost
The cost of your Florida cyber liability insurance policy will be different from anyone else's. Like most business policies, your prices are customized to your needs. Take a look at what carriers use to determine premiums:
- Gross annual income
- Cyber protection plans in place
- Updating of software
- Type of data stored
- Access points to data
- Malware used
- Prior claims
While you won't know your exact premiums off the bat, you can get quotes for specific pricing. Cyber liability insurance is relatively inexpensive, depending on the type of business you operate. Sometimes coverage can be added to your business owners policy and more.
Who Needs Cyber Liability Insurance?
While some may argue that cyber liability insurance isn't necessary, there are plenty of facts that contradict that. If a staff member opens up a faulty link, you'll be exposed in a matter of seconds. Take a look at where cyber liability insurance is most helpful:
- If you own a business, whether large or small
- If you use email
- If you have internet
- If you utilize software or computers
- If you obtain employee or client data electronically
Cyber Liability and Data Breach Insurance
Your cyber liability policy will usually include data breach coverage. Both work together and are used at different times. These coverages can be included in a package or business owners policy in many cases.
When data breach coverage applies:
Data breach coverage will apply when you have a breach of data, and you need to restore what was compromised. Coverage can be in the form of alerting the public of breach, fraud alert, identity restoration, consulting services, and more. This coverage is utilized first.
When cyber liability insurance applies:
Next, cyber liability insurance would apply when an employee, client, or member of the public files a lawsuit. The lawsuit is due to the data breach that occurred and any sensitive information that may have been stolen. Cyber liability will pay for defense and settlement costs.
Cyber Liability Insurance for Law Firms
Cyber liability insurance for a Florida law firm will look the same as for any other business. It may be deemed more important for a law office to obtain coverage, since they hold intensely sensitive data.
Attorney-client privilege could go out the window if a law firm's system is hacked. This could put your clients and your reputation at risk. A comprehensive cyber liability policy should be purchased to have adequate protection from a loss.
Cyber Liability Insurance for Small Businesses
Every business owner that doesn't deal solely on paper should have a cyber liability policy. Nowadays, most companies use computers to operate. What happens if one gets hacked?
Is your company prepared to pay for the damages and legal fees on your own? Similar to professional liability insurance, cyber coverage is often overlooked. Unfortunately, cash flow tends to be an issue for small business owners. One loss could put you out of business if you're not correctly insured.
Cyber Liability Insurance for Technology Companies
Technology companies should know better than anyone how important cyber liability insurance is. They deal with digital threats every day and have the most experience in the online world. Still, you'd be surprised how many business owners go without cyber liability protection.
Most policies will have a small amount of coverage for this risk worked into the coverage offerings, but it's hardly enough. In order to get proper protection for a genuine cyberattack, a separate policy is needed. Like commercial umbrella insurance, cyber liability is not mandatory, but necessary.
How to Connect with a Florida Independent Agent
When you're searching for cyber liability insurance in Florida, get someone local. If you're trying to figure out coverage on your own, you could be missing key elements. Leave business insurance to the professionals.
An independent insurance agent can help with policy and premium options. They have access to several markets, saving your company time and money. Connect with a licensed expert on TrustedChoice to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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