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Cyber Insurance 101 – Why Every Business Needs It

 In today’s digital world, even the smallest business is at risk of a cyberattack. From phishing emails to ransomware, hackers don’t just target big corporations—they target anyone with valuable data. That’s why cyber insurance is no longer optional. It’s your business’s safety net in the event of a digital disaster.

1. What Is Cyber Insurance?

Cyber insurance (or cyber liability insurance) is designed to protect your business from the financial consequences of cyberattacks and data breaches.

It typically covers:

• Data breach costs – Customer notifications, credit monitoring, and legal fees

• Cyber extortion – Ransomware and related expenses

• Business interruption – Lost income if your systems go offline

• Liability protection – If a breach exposes sensitive customer or employee data

2. Why Every Business Needs It

• Small businesses are prime targets – Hackers know smaller companies often have weaker security.

• Data breaches are costly – The average small business breach can cost $150,000+.

• Compliance matters – Certain industries (healthcare, finance) may face fines without proper coverage.

3. Real-World Example

A local dental office fell victim to ransomware, locking all patient files. Cyber insurance paid for:

• Data recovery

• System restoration

• Legal support and patient notifications

Without coverage, the practice could have closed its doors.

Cyberattacks are no longer “if,” but when. Protect your business with a cyber insurance policy before it’s too late. Contact us for a free coverage review.