Cyber liability insurance protects manufacturers from the costly effects of a data breach or cyberattack. It's strongly recommended for any business that stores customer information.
Data breaches and cyberattacks can be devastating for small manufacturers, especially if your customers' payment information is compromised, or crucial services go offline.
State laws might require you to notify all affected customers or provide them with credit monitoring services. System downtime could interfere with transactions, sideline equipment, or involve a hefty cyber extortion demand. You might also have to pay for a data breach investigation and data recovery. These costs add up quickly.
That's why businesses that store customer information, or depend on computers in any way to conduct business, need cyber insurance. This policy covers costs related to data breaches and cyberattacks, and provides essential support and resources.
This policy provides coverage related to:
This coverage is also called data breach insurance. It provides financial protection against cyber threats at your own business.
For example, it would help your manufacturing business recover after a hacker accessed your customers' credit card numbers, or an employee accidentally clicked on a phishing link and downloaded a virus.
Cyber liability insurance can help pay for:
Data breaches are expensive, and owning 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 a common cause of data breaches.
Cyber insurance can help your business rebound quickly after a data breach, but it's not the only protection you need. Other recommended insurance policies for small manufacturers include:
General liability insurance: This is often the first policy purchased by small business owners. It covers legal expenses related to customer property damage and injuries, and usually includes product liability insurance to cover harm caused by your products.
Business owner’s policy (BOP): This policy bundles general liability coverage with commercial property insurance, usually at a lower rate than if the policies were purchased separately.
Workers' compensation insurance: Workers' comp pays for medical bills and provides disability benefits to factory workers who are injured on the job. Most states require this coverage for businesses that have employees.
Commercial umbrella insurance: Similar to excess liability insurance, this policy boosts coverage on a manufacturer's general liability, employer’s liability, or commercial auto insurance policy once the limit is reached.
Are you ready to safeguard your manufacturing business with cyber insurance or another type of insurance? Complete Insureon’s easy online application to compare quotes from leading U.S. insurers. You can also consult with an insurance agent on your business insurance needs. Once you find the right types of coverage for your small business, you can begin coverage and receive your certificate of insurance in less than 24 hours.