How to find the right cyber insurance

minute read

Last Updated October 27, 2023

Category Cybersecurity

Do I need cyber insurance?


Have you ever asked yourself: “Do I need cyber insurance?”

If you’re like most firms and small businesses, security ranks high on your list of concerns…so should cyber insurance. Cyberattacks can be devasting—and your organization may not have the funds to adequately recover from such an incident.

The right solutions and services will help your business avoid data breaches. The right cyber insurance will help you recover in case the worst does happen.  

As AI and the cyber landscape in general matures, it’s important to have the right protection in place. In this post, we’ll be talking about what that ideal approach looks like.

To avoid business interruption, prevention is key

To get affordable, comprehensive cyber insurance coverage, you need to start with the basics. Insurers want to make sure that you have taken the proper steps to secure your business when you apply for coverage.

  • If you are accessing your core applications from a secure cloud, you have taken an important first step to making sure your data is protected in top-notch data centers and by features like multifactor authentication.
  • Insurers also want to make sure your devices are monitored and your employees are up to date on the latest cybersecurity threats. Make sure you secure your devices and offer ongoing training to all employees.

Your insurance plan must be shaped to your needs

Once you’ve protected your business with solutions like those discussed above, consider solving the “do I need cyber insurance” question once and for all.

Simply put, cyber insurance provides financial protection from attacks, including expense coverage related to:

  • Forensic investigations
  • Data recovery
  • Legal fees
  • Client and customer notifications
  • Credit monitoring services
  • Potential lawsuits resulting from the breach

Still not sure why you need cyber insurance or what it should cover?

Let’s break it down a little. Seek a plan with the following features:

  • Data breach liability: If a business handles customer or employee data, it is legally responsible for protecting that information. In the event of a data breach, the business can be held liable for damages and legal costs. Cyber insurance helps mitigate this risk by providing coverage for legal defense and settlements in case of lawsuits related to data breaches.
  • Business interruption coverage: Cyber incidents can disrupt business operations, leading to significant downtime and loss of income. Cyber insurance includes coverage for business interruption, helping to compensate for the income loss during the recovery period.
  • Ransomware protection: Ransomware attacks are a prevalent cyber threat. The data that firms and many small businesses carry is attractive to attackers. Cyber insurance offers coverage for ransom payments and assistance with negotiating with cybercriminals to regain control of the data.
  • Reputation management: A cyber incident damages a business’s reputation and erodes clients’ trust. Cyber insurance provides access to crisis management and public relations services to help the business navigate the fallout and rebuild its reputation.
  • Cyber extortion: Look for coverage for expenses related to threats of cyber extortion, where criminals demand money to prevent the release of sensitive information or to refrain from disrupting business operations.
  • Privacy liability: Coverage might cover damages and legal costs resulting from violations of data protection and privacy regulations, such as GDPR (General Data Protection Regulation) or CCPA (California Consumer Privacy Act).
  • Crisis management and public relations: Your business may have cleanup to do following an attack, so seek coverage for expenses related to managing public relations and reputational fallout after a cyber incident.
  • Multimedia liability: Many small businesses and firms might also need coverage for claims related to online content, such as defamation, libel or copyright infringement.
  • Regulatory fines and penalties: Finally, you might consider a plan that includes coverage for fines and penalties imposed by regulatory authorities due to non-compliance with data protection and privacy regulations. Many industries have specific data protection and privacy regulations that must be followed.

Bottom line: Attacks are complex and may lead to financial fallout you hadn’t expected. Comprehensive cyber insurance is key to keeping your business afloat.   

How to find a cyber insurance partner

If all the above information about coverage seems complicated, it doesn’t have to be. By working with Right Networks and Lakeside, you can get the technology solutions and the cyber insurance coverage to keep your business safe.

Because of its Right Networks partnership, Lakeside deeply understands your business model and needs, resulting in a true relationship with your insurance agent, tailored insurance coverage that matches your requirements, policy customization, and a fast, streamlined application and quote process. Lakeside is here to help you work through policy language and make sure you actually understand the coverage you need and why.

Mitigate your cyber risk today

Ready to mitigate cyber risk and put a plan in place if your business is targeted?

Reach out to Right Networks to begin using their managed security solutions or Cloud Premier. Your Right Networks partner will send you directly to Lakeside, ensuring you get a fast quote and painless application experience.

It’s always a good idea to review your coverage and risk exposure. There’s no better time to work with Right Networks and Lakeside to bring you peace of mind and a plan.

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