In today’s digital age, cyber threats are a growing risk for businesses of all sizes. From data breaches to ransomware attacks, the financial and reputational damage can be devastating. In this video, Shane explains cyber insurance and how it helps protect your business against the ever-evolving landscape of cyber threats. Learn how to safeguard your sensitive data, maintain customer trust, and recover quickly from cyber incidents.

What You’ll Learn:

• What cyber insurance is and why it’s essential for modern businesses.

• The key coverage areas of a cyber insurance policy, including data breaches, network security, and business interruption.

• How cyber liability insurance protects against financial losses, legal costs, and reputational damage caused by cyberattacks.

• How to assess your business’s cyber risks and choose the right coverage.

Why Cyber Insurance Matters:

With cyberattacks becoming more frequent and sophisticated, protecting your business from online risks is crucial. Cyber insurance not only helps mitigate the financial consequences of a cyberattack but also ensures you can continue operating even after a breach. Mt Franklin Insurance is here to help you understand the risks and find the best cyber insurance policy for your needs, whether you’re a small business or a large enterprise.

Get in Touch:

Concerned about your business’s cyber risks? Contact Mt Franklin Insurance today to discuss how cyber insurance can protect your company! Click here to get a quote.

Video Transcript

 
Hi. I’m Shane Lipson from Mount Franklin Insurance. So everyone knows in this day and age that cyber insurance is important. People hear about data breaches, data being lost, hospitals that have their records locked unless they pay ransomware. But cyber insurance affects all size businesses, not just large businesses and not just in a particular industry.
 
It affects just mom and pop small businesses as well. And the challenge with cyber insurance is twofold. The first is anytime there’s a cyber incident, you have both a liability and a property exposure. From the liability standpoint, data that gets released about your customers, whether it’s their names, whether it’s birth dates, addresses, or credit card information, but any type of information about your client causes a potential liability situation for the business because clients can come back after the business and recover damages in case their name or reputation was used in some other fashion based on the fact that the data was linked, was leaked. In addition, you have a challenge that there are a myriad of regulatory, promulgations, laws, and fines now that exist around keeping customer data secret.
 
And if you have a release of customer data, you can actually find yourself in a regulatory situation. So the problem on the liability side is that the standard general liability policy excludes anything to do with data. It has nothing to do with cyber. It has nothing to do with data. It excludes all of that.
 
And so any business that is thinking about relying on their general liability policy for coverage of that liability situation is likely gonna find themselves without any coverage. There’s also property exposure, and the property exposure is the money that businesses spend in order to recover the data. So that can be forensics data to get their data back, but it can also be paying ransomware. Mhmm. I could be paying, any kind of, IT folks to recover systems.
 
It’s any money that the business spends in order to recover their own data or have access to the data. And, again, property policies exclude all of this in general. There’s a built in exclusion to these property policies. And so the way only way that there’s gonna be any type of coverage is through a specific cyber policy. That’s one of the interesting things about cyber policies, is they’re one of the few coverages that actually has both liability coverage and property coverage built into the same form.
 
Usually, you buy liability or you buy property coverage. But a cyber policy properly protects both sides. We’ve seen claims ourselves from small mom and pop businesses that open an errant email or a phishing email and either miswire money because it was a cyber, social engineering attack, what we call a, social engineering or phishing attack. And we’ve even seen small businesses that, mistakenly double click on an email that ends up locking their system up. So these are really relevant, not just for large businesses, but businesses of all sizes.
 
And one of the fantastic things about these cyber policies is they’re surprisingly affordable. We have many carriers that provide cyber coverage for different type of types of businesses. And so we encourage you to give us a call. Cyber experts that can talk about the the types of coverage that your business needs in terms of cyber coverage and provide various options that fit your price point.