The Benefits of Working with a Cyber Insurance Broker in San Diego

Hoffman Hanono
August 7, 2024

Cyber attacks are rising, and your business could be at risk without adequate protection. Cyber attacks can lead to lost income and regulatory fees, erode customer confidence, damage your reputation, and bring your business to a grinding halt.

This is why having an experienced cyber insurance broker is so important.

From protecting your business from lost income to covering litigation expenses, cyber risk management insurance isn’t just a smart business move—it’s a business necessity. Here’s why.

Who Needs Cyber Insurance?

As a small business owner, you might think your company is too small to be on a cyber attacker’s radar. Unfortunately, this couldn’t be further from the truth. Accenture’s Cybercrime study shows that nearly half of all cyberattacks target small businesses. Only 14% are prepared to defend themselves.

Given these statistics, we believe working with a cyber insurance broker is critical for any business that:

  • Stores sensitive customer information
  • Cannot operate without computers
  • Conducts online transactions
  • Handles intellectual property
  • Operates in regulated industries like healthcare or finance

Why Cyber Insurance is Essential

Protects from Lost Business Income

Following a cyber attack, businesses must often suspend operations to prevent further data loss and investigate the attack. This process can take several hours to weeks, resulting in significant financial losses. A cyber insurance broker will help you customize an insurance plan that ensures you meet ongoing expenses like payroll and rent—even when you cannot operate.

Fees Associated with Notifying Customers

Your business is legally obligated to notify customers about data breaches. These costs can be substantial for companies with a large customer base. Many cyber insurance policies kick in to cover the costs associated with sending letters, setting up call centers, and providing credit monitoring services.

Repairs to Damaged Systems

Cyber attacks often damage your IT infrastructure—whether it’s physical damage to servers, the costs associated with removing malware or ransomware, or expenses required to strengthen security measures. A cyber insurance broker will help you customize an insurance plan that covers some of these expenses while you get your business back on track.

Litigation Expenses

Unfortunately, security breaches often lead to lawsuits, which are expensive—even if your company is not found at fault. You may be expected to pay these legal fees out of pocket without comprehensive cyber security insurance.

Crisis Management Expenses

Following a security breach, companies must quickly mitigate reputational damage. They often hire PR firms to issue official statements, handle press inquiries, and manage communications with regulators and stakeholders. Businesses may also have to invest in media campaigns to rebuild their reputation and trust. All of this adds up, and without cyber insurance, you may have to pay these expenses out of pocket.

Protect Your Business & Legacy: Contact Us Today!

You worked hard to build your business from the ground up. Don’t let a cyber attack derail your legacy. For over 60 years, we've helped San Diego businesses protect their businesses with customized plans built around their needs. Let our friendly and experienced agents give you the security and peace of mind you deserve. Contact us today!