Here at Alternative Technologies, we monitor the current cyber landscape to help ensure that our clients are resilient in a world with cyber threats that are increasingly sophisticated and costly.
We take these threats seriously and strive to prevent our clients from becoming victims of a cyberattack. While proactive measures can certainly help, there is no guarantee that your business will never be the victim of a cyberattack – which can be highly disruptive and costly to small businesses and nonprofits. In 2023, data breaches cost small businesses a median of $46,000, but more than half paid over $100,000.
FREQUENTLY ASKED QUESTIONS
What is cyber insurance?
Also called cyber liability insurance or cybersecurity insurance, cyber insurance covers financial losses that your organization may incur because of ransomware attacks, data breaches, or other cyber incidents.
Just like your car insurance will pay for vehicle damage or bodily harm, cyber insurance may pay for the harm done to your business because of a cyberattack.
I already have business insurance. Will that cover damage from cyberattacks?
Generally, no. Most standard business insurance policies do not cover losses from cyberattacks.
What does cyber insurance cover?
Cyber insurance coverage will vary depending on the insurer and the needs of your organization. There are many options, so work with your insurance broker to decide which one is most appropriate for you. These are some examples of what cyber insurance can cover:
- Business interruptions
- Threat response and remediation
- Legal expenses
- Data breach recovery
- Regulatory action
- Reputation management
- Ransom payments
What is usually not covered by cyber insurance?
While not typically covered in a cyber insurances policy, some of these may be available at an additional cost:
- Breaches of third parties like your customers or clients
- Cyber incidents caused by malicious actors tricking or manipulating staff. This is also known as phishing or social engineering.
- Losses caused by malicious or negligent employees
- State-sponsored attacks
- Cyberattacks that exploit a known vulnerability
- Network failures not caused by cyberattacks
Can Alternative Technologies recommend an insurer or policy to me?
No, you should work with your current insurance broker to select the right policy for your organization. We are happy to help with the application process and with any remediations that your insurer requires.
Can Alternative Technologies help me fill out the questionnaire in my application for cyber insurance?
Yes! We do this regularly and would be happy to do it for you.
Can Alternative Technologies help me if my organization is the victim of a cyberattack?
Yes – and, if your organization is the victim of a ransomware attack or a data breach, we strongly recommend consulting with security specialists immediately to secure your systems and identify where and how the breach occurred. Alternative Technologies will work with these specialists to make sure your systems are secure, but these specialists’ expertise is valuable and costly. The price of incident response can start at $30,000 and easily increase from there. Cyber insurance can cover some or all of these costs and may even have an incident response firm that they recommend that you use.
Reach out to us with any questions, we are here to help!