How commercial insurance can protect you in the event of a cyberattack

Cyberattacks are on the rise for small businesses. According to recent reporting, over the past year, 47% of small businesses experienced a cyber-attack over the past year alone. Of those, 44% were hit more than once.

If you are a small business, you must be just as concerned about your online security as you are your physical and financial security. If you don’t, you will not only potentially lose the trust of customers, but you could also end up spending as much as $200,000 to recover.

One way you can protect yourself is to invest in the right commercial insurance. Small business insurance options often include cyber liability insurance.

This option covers costs associated with a breach involved intangible assets, such as customer data. It will also cover the cost of legal fees, technical investigations, loss of revenue and damage to electronic damage should your business be the business of a cyberattack.

In addition, when you have this insurance, you may also receive help with notifying clients of the attack and hiring a public relations firm to help you manage communication-related to the problem. This policy may even help with you the cost of legal fees and regulatory penalties.

Cyber liability is not the only insurance option that could be key in the event of an online attack. You should also consider business interruption insurance. This type of small business insurance will cover the income you lose should you need to close your business to help manage the ramifications of a cyberattack.

If you are a small business owner, having the proper cyberattack coverage could make the difference between staying in business and going bankrupt.

Are you interested in cyberattack coverage for your Bay Area, CA small business?

The team at Wai Cheng Insurance Inc. in Bay Area, CA can help build the perfect plan to protect your dream.

Commercial Insurance FAQs

At Wai Cheng Insurance Inc., we usually receive many questions from our Bay Area, CA clients: Do I need commercial insurance? What does it cover? Is it mandatory? Business insurance can be a confusing topic, especially for startup business owners. As such, we have prepared a comprehensive FAQs section to answer most of the questions you might have. 

Please take a few minutes to browse through our FAQs section. The chances are that you might find an answer to a question that has been bothering you.

Is commercial insurance mandatory?

Commercial insurance is broad. It carries various options to ensure that businesses are well-covered. However, California law requires businesses to maintain the below mandatory commercial insurance.

  • Workers’ comp insurance: If you have an employee in your business, you must carry workers’ comp insurance to protect your employees against work-related injuries. Failure to carry this insurance may lead to civil and criminal charges.
  • Commercial auto insurance: It protects vehicles that carry out business operations. It covers vehicle damage and protects the drivers as well.

What does commercial insurance cover?

Business insurance protects businesses against various perils. Here are some examples.

  • Liability protection
  • Assets protection
  • Business income protection
  • Professional negligence protection
  • Cybercrimes protection

As you can see, commercial insurance is designed to protect businesses from various risks. Whether you are a startup or seasoned business owner, you need commercial insurance to protect your business.

Is there comprehensive commercial insurance that can take care of all my risks?

Not really. If commercial insurance were to be compressed into one policy, most organizations’ budgets would be out of reach. In light of this, commercial insurance is broken down into various categories to enable businesses to choose those that fit their needs.

Where can I buy commercial insurance?

Shopping for commercial insurance for your Bay Area, CA business shouldn’t be an arduous task. When you partner with Wai Cheng Insurance Inc., we shall ensure we protect your business from various risks at an affordable rate. Contact us today.