73% of business owners in the United States reported a cyber attack last year. Some reported that they experienced more than one incident.

Small businesses face a serious threat when it comes to conducting operations online. You need security measures and insurance in place before something goes wrong.

It’s time to do more about cybersecurity to protect your business, starting with understanding cybersecurity insurance requirements.

Cybersecurity Insurance Requirements

Cybersecurity insurance requirements vary from small business to small business. To decide on the right coverage, you need to take your risk factors into account.

An insurance provider can work with you to create a customized plan based on these factors:

Overall Risk

The main factor that goes into determining cyber liability insurance is potential exposure risk. Consider completing a cyber risk assessment with your IT team to gain important insights.

An assessment can identify vulnerabilities within your online presence and IT tools, like hardware and software. Network security is also assessed. You’ll be able to get the right coverage amount to protect against potential exposure.

Your industry will play a vital role in potential threats. The security measures your business utilizes will determine your policy and rates.

Data Types

A data leak or cloud breach can negatively impact your business. As such, data types are considered when choosing the right cybersecurity insurance coverage.

Your business policy should be based on the types of services you provide for your clients. For instance, if you handle clients’ personal identifiable information (PII), your business will benefit from identity protection services.

Some businesses don’t handle client data at all. In this case, your cyber plan would cover damages from a data breach that impacts your small business operations.

For example, a ransomware attack can cost you money and data. Your cybersecurity policy should cover this specific type of attack if you are at risk.

Small Business Revenue

Cybersecurity insurance quotes can help you find a policy that matches your needs and budget. Your small business’s annual revenue may determine the policy premium.

Check your financial records to get a good estimate of your potential revenue for the upcoming year. Financial statements with clear numbers will help insurance providers understand your risk.

The more annual revenue you earn, the higher your premium amount will be.

Many policies come with additional protections to cover varying threats. This could increase your insurance coverage cost as well.

Protect Your Small Business From Cyber Liability

In the event of a data breach, your business faces more than monetary challenges. Your cybersecurity insurance requirements will depend on the factors discussed in this guide.

Every business that conducts business online should have a cyber liability policy. That’s where we come in. RBP Insurance is a full-service insurance agency offering small businesses a complete approach to insurance.

We offer personalized services to help you find the right coverage for your needs. As a one-stop shop for all things business insurance, we can be your one and only provider. Get a free quote today to get started.