Cyber liability insurance, also called cyber security insurance, protects small businesses from the high costs of a data breach or malicious software attack. It covers expenses such as customer notification, credit monitoring, legal fees, and fines.
A data breach can be devastating for architects, engineers, and other building design professionals, especially if your customers' payment information is compromised. That's why businesses that store credit card numbers or other sensitive information need a cyber liability policy.
Cyber insurance can pay for data recovery costs and provide essential support and resources. This policy provides coverage related to:
Architects and other building designers typically need first-party cyber liability coverage, which provides financial protection against cyber threats at your own business. For example, it would help your business recover after a cyberattack exposed your customers' personal data.
You may be able to add first-party coverage, also called data breach insurance, to your general liability insurance or business owner's policy (BOP).
Another type of cyber policy, third-party coverage, is recommended if you're responsible for another business's cybersecurity. For example, if you're hired to help another engineer start a business and you recommend insecure software, you could be held liable for a data breach.
First-party cyber insurance coverage can help pay for:
Data breaches are expensive, and running a small business doesn't mean you're safe from hackers. Small companies are often targeted by cybercriminals because they have fewer security measures in place. On top of that, simple accidents by employees – such as opening a phishing email – are the most common cyber risks.
Insureon's small business customers pay a median of $140 per month for cyber liability insurance.
Insurance costs for building design professionals are based on a few factors, including:
While cyber liability insurance provides financial protection against cyber risks, it does not provide complete protection. Building design professionals should also consider:
General liability insurance: Often the first policy bought by small businesses, this policy protects against common third-party risks, such as a customer who trips and suffers an injury in your office.
Business owner’s policy (BOP): This policy bundles general liability coverage with commercial property insurance at a lower rate than purchasing each policy separately.
Professional liability insurance: Also called errors and omissions insurance (E&O), this policy is critical for building design professionals who provide expert advice. It can cover legal costs of lawsuits related to work performance.
Workers’ compensation insurance: Most states require workers' comp for businesses with employees. It can cover medical expenses if an employee is injured on the job.
Commercial auto insurance: This policy helps cover costs if your business vehicle is involved in an accident. Each state has its own requirements for auto liability insurance.
License and permit bonds: Architects and engineers may need a license or permit bond to work in their state, or to take on certain projects.
Are you ready to protect your building design business with cyber liability insurance or another type of insurance? Complete Insureon’s easy online application today to compare quotes from top U.S. carriers. Once you find the right policy, coverage can start in less than 24 hours.