When your business stores customer credit card numbers, or even email addresses, it opens itself to risk. A hacker could illegally access the data and make purchases using someone else's credit card. They could also send phishing emails to your customers in an attempt to get them to reveal financial information.
Data breaches can happen by accident, too. For example, an employee could misplace a thumb drive, or rely on outdated software with known vulnerabilities.
In the event of a data breach, your business is responsible for notifying all affected customers and taking on other responsibilities, depending on the data breach laws in your state. The costs of responding to a data breach can add up quickly, which is why you need cyber insurance.
There are a couple kinds of cyber insurance, but most installation businesses only need one. Data breach insurance, also called first-party cyber liability insurance, protects against the costs of data breaches and cyberattacks at your business.
This policy can help pay for:
Cyber liability insurance helps installation businesses recover quickly when someone outside your company gains access to sensitive information, or might have gained access.
Here are a few examples of incidents where cyber insurance would cover costs:
Accidental data breaches are among the biggest cyber risks for small businesses. Misconfigured software settings can result in vulnerabilities that leave personal information unencrypted, or an employee could misplace a laptop with sensitive data on it.
When a data breach exposes personal information, cyber insurance will help pay for the cost of notifying affected customers and conducting an investigation to find out what caused the breach.
Ransomware is a type of malware that takes your files hostage in return for a ransom. It's a big problem for small businesses, since they typically have weaker cybersecurity.
If your installation business is hit with a ransomware attack, your cyber liability policy can help pay the ransom so you can get your data back. It'll also cover the cost of figuring out how the attack happened, so you can prevent future cyberattacks.
Phishing emails sent to employees can trick them into revealing personal information, such as passwords to online accounts. They often mimic a trusted entity, such as your business, a manager, or a popular website.
If one of your employees clicks on a link in a phishing email, or downloads an attachment from an unknown source, the security of your system could be compromised. Cyber insurance will help your business pay any resulting costs, but the best method is to educate your employees to prevent these incidents from happening in the first place.
Cyber liability insurance protects against cyber risks, but you'll need additional coverage for injuries, property damage, and other common risks. Other policies that installation companies purchase include:
Commercial auto insurance: This policy covers legal fees, medical bills, and repairs in the event of an accident involving a vehicle owned by your installation business. Most states require this coverage for vehicles owned by a business.
Contractor’s tools and equipment insurance: This policy helps pay for repair or replacement of an installation contractor’s tools and equipment if they are lost, stolen, or damaged.
Are you ready to safeguard your installation business with cyber liability insurance or another type of insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.