This is a great Los Angeles Times article pointing out the need for cyber protection. Insurance can be a solution to part of your small business protection.
Cyber liability insurance can be included in your Business Owners Package (BOP) or be written as a stand alone policy. If your business holds any confidential information electronically or does business over the web this coverage should be considered as part of your company’s risk management.
Here are some key components of a typical policy:
Privacy and security liability. If you maintain private employee or customer data like credit card numbers, you are liable if the information slips out because of faults in your systems or theft by hackers or malicious employees. Privacy and security liability coverage also protects you from costly corporate claims from businesses like banks and credit card issuers, who can sue even if the losses don’t occur inside your shop.
Crisis management covers costs for restoring lost or corrupted data, and getting your systems back up and running. Some carriers include public relations coverage to help defray the costs of consultants and advertising to rebuild your reputation after an incident.
Business interruption, denial-of-service attack and lost income coverage kicks in if you lose revenue after an attack or when a service provider, such as a web host, is shut down by a cyber attack, has a glitch or goes out of business. It also helps defray costs of restoring valuable data and repairing systems.