Every insurance agency should always look for ways to deliver a better client experience and boost sales. You can do both by offering cyber liability insurance on top of what you currently offer your business clients. This is one of the newer types of insurance, but if you have any business clients, it is a logical type of coverage to offer.
What Is Cyber Liability Insurance?
Cyber liability insurance is specifically geared toward businesses. It provides coverage for cybersecurity-related issues, such as data breaches, malware attacks, ransomware, and so much more.
What Can It Cover?
The exact coverage will depend on the cyber liability insurance policy that you offer. You can determine what coverage your clients most likely need and look for carriers that provide that coverage. Overall, this type of insurance can cover all the costs associated with a cyberattack or data breach. This can include:
- Lost income
- Cost of notifying customers
- Cost of recovering compromised data
- Cost of repairing damaged computer systems
- Forensic investigations
- Regulatory defense expenses and fines
- Litigation expenses
- Business interruption
- Crisis management expenses
- Rebuilding reputation
- Cyber extortion
- And more
What Won’t It Cover?
It is also important to note that most cyber liability insurance companies will exclude a few things, including:
- Preventable security issues
- Incidents from before the policy began
- Incidents caused by the insured
- Costs of improving cyber security after an attack or breach
- Infrastructure failures not due to a cyber attack
Many companies will not cover the cost of lost or damaged equipment. These types of losses are typically covered by property damage insurance.
Why You Should Offer Cyber Liability Insurance
The reasons for offering cyber liability insurance are simple. You can increase your revenue streams and provide all the insurance your clients need in a single agency. This can prevent them from leaving you for another agency that offers the coverage you don’t.
If you cater to individual clients, it may not make sense to offer cyber liability insurance. Still, if you have any business clients, it is smart to offer it.
Cyber Liability Insurance Is Good for All Business Sizes
It’s important to know that cyber liability insurance is important for businesses of any size. Some cyber criminals attack large companies because of the amount of data or money they can get from a single attack.
On the other hand, cybercriminals know that smaller businesses don’t have the budget to invest in cybersecurity, making them easier targets. On top of that, the results of a cyberattack can have a larger impact on small businesses, as they have fewer resources to help them recover from the attack.
It is also worth noting that in today’s digital world, every business will have some type of digital record, whether inventories or employee databases. This means that even stores with only physical locations could benefit from cyber liability insurance.
Selling Cyber Liability Insurance – Benefits to Highlight
Before you decide to sell another type of insurance, you are wise to confirm that it will benefit your customers. Not only is this important for their satisfaction, but it also gives you highlights that you can advertise when marketing the policy.
The Long List of Unexpected Costs
One of the most obvious benefits of this type of business insurance is that it protects your clients from a long list of unexpected costs after a cyberattack. From business disruptions to time spent notifying clients to upgrading security infrastructure, a lot of hidden costs can severely impact an uninsured business.
Many Policies Cover Upgrades for Security
Another crucial benefit is the fact that many policies will cover a portion of infrastructure upgrades designed to prevent cybersecurity attacks. Even small businesses will then find it more affordable to make those upgrades.
Of course, security upgrades reduce the risk of an attack. While it is good for businesses to have insurance to compensate them for the costs and downtime, it is better never to have to deal with a cyberattack. Prevention of cyberattacks also averts other consequences that are harder to fix, such as damaged business reputation.
Market It Along With Business Coverage
Figuring out when to market this cyber liability coverage should be easy. You can do so while discussing all the other types of coverage businesses need, from liability insurance to property insurance. Your Jenesis insurance agency management software will make this easy.
Conclusion
Your insurance agency should consider offering cyber liability insurance to round out your offerings for businesses. This will give you another opportunity to cross-sell. It will also prevent you from losing clients who decide to switch to an agency that can help them get this type of coverage. You can easily integrate marketing for cyber liability insurance into your other marketing campaigns that are targeted at businesses.