The widespread adoption of computers has improved many business practices, but it’s also brought new risks that many businesses just a few years ago didn’t worry about. Cyber insurance is a specialized coverage that protects Massachusetts businesses from many of the risks that come with using digital technology.
With the prevalence of data breaches and online attacks, cyber insurance has quickly become a mainstream coverage. It’s still a relatively new type of insurance, however, and the protections that policies offer can vary significantly as a result.
For this reason, it’s particularly important to work with an insurance agent who specializes in cyber policies when looking for coverage. A specialized agent will know the different coverage options that insurers offer, and they can help select the right one for a particular business’ situation.
The vast majority of businesses in Massachusetts ought to consider cyber liability insurance, for its protections can help most businesses that rely on computer and/or the internet. A short (and non-comprehensive) list of businesses that might benefit from a cyber liability policies’ protections includes:
There is a range of important coverages that cyber liability insurance policies may provide. Some of these include:
Ransomware attacks, in which files are seized until a payment is made, are becoming a more common threat. As mentioned, some cyber policies cover such attacks through extortion liability coverage.
Businesses that are particularly concerned about this threat ought to work closely with a specialized agent who understands the risk and available insurance protections. An agent who’s well-versed in cyber policies will be able to explain what a policy would cover should a ransomware program successfully lock files.
Errors and omissions coverage is found in some cyber policies, but the policies that offer this coverage a usually designed for businesses that offer cyber services. The E&O coverage, in particular, is typically suited to meet the risk mitigation needs of software-as-a-service, cloud-based service and other tech-focused companies.
For businesses that offer computer- or internet-based services, having a cyber policy that includes E&O coverage might be a very good idea. For businesses in other sectors, getting E&O coverage through a separate policy that’s targeted for a more appropriate industry is usually a wiser choice.
Now that cyber policies are so important and widely used, there are several ways to purchase the coverage. It’s widely available through stand-alone policies and commercial package policies, and some business owners policies offer the coverage as a standard or optional protection. For many businesses, one of the package policy options (i.e. a commercial package policy or business owners policy) makes the most sense because it lets businesses bundle their cyber policy with other policies that they need.
For help finding cyber insurance that suits your Massachusetts business’ needs, contact the experienced and independent insurance agents at Charles River Insurance. Our agents have helped many businesses find coverage, and they can get your business the best available policy since they’re independent agents who are free to compare policies from different insurers.