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 a small wholesaler, especially if your customers' payment information is compromised. State laws might require you to notify all affected customers, or provide them with credit monitoring services.
These costs add up quickly. You might also have to pay for a data breach investigation, cyber extortion demands, and data recovery.
That's why businesses that store credit card numbers and other personal information need cyber liability insurance. This policy helps pay for costs related to data breaches and cyberattacks, and provides essential support and resources.
This policy provides coverage related to:
Wholesale distributors 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 hacker accessed your customers' credit card numbers.
Another type, third-party coverage, is recommended if you're responsible for another business's cybersecurity. For example, if you're hired to help another wholesaler set up shop and you recommend insecure software, this policy would protect you from legal costs.
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.
While cyber liability insurance covers common cyber risks, it does not offer complete protection. Injuries or theft can affect any wholesale business. Other insurance policies for wholesalers to consider include:
General liability insurance: This policy covers the most common lawsuits faced by wholesalers, including customer injury and property damage claims.
Commercial auto insurance: This policy covers vehicles owned by your business. It typically pays for accidents and damages related to theft, weather, and vandalism.
Surety bonds: This bond assures a wholesale business’s clients that an insurance company will reimburse their losses if the business fails to fulfill a contract.
Are you ready to safeguard your wholesale business with cyber liability insurance or another type of business insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.