As a self-employed person, you work online more and more. Maybe you store customer data, process payments or use different software. As a result, you run the risk of problems such as hacks or data leaks. Cyber insurance will help you in that case. Such insurance ensures that you will not have to bear all the costs if something goes wrong. In this article, we will tell you exactly what cyber insurance is, what you can do with it and why it is useful for you as an entrepreneur.
What is cyber insurance?
Cyber insurance is business insurance that protects you against damage caused by digital problems. Think ransomware, phishing, data breaches or a break-in into your system. If this causes your business to grind to a halt, lose data or be held liable, the insurance can pay the costs. In many cases, you will also get help with it, such as IT support after an attack or legal help in case of a data breach.
What is covered?
How much is covered varies by insurer. But usually you get reimbursement for:
- Damage caused by hacks, ransomware or other viruses
- Cost of IT help and getting your data back
- Liability if there is a data breach
- Damage to your name and the cost of putting it right again
- Loss of revenue if your systems go down
- Legal help with AVG issues, so you are well protected
What is usually not covered?
It is worth noting that not everything is covered by such insurance. In fact, these exceptions often apply:
- Damage due to intent or carelessness of yourself
- Problems that existed before you took out the insurance
- Physical damage to your equipment
- Fraud or theft by people within your company
So make sure you know exactly what your insurance does and does not cover. That way, you won't end up with unexpected costs.
Why is cyber insurance useful for self-employed people?
Even as a small business owner, you are vulnerable. After all, you use customer data, e-mail and maybe even a web shop or online accounting program. Cybercriminals often target precisely these kinds of small businesses. This is because security is sometimes less strong there. Cyber insurance can help you:
- High cost to restore everything after an attack
- Loss of time and damage to your good name
- Legal issues if a data breach happens
What should you pay attention to when taking out?
There is a lot of choice when it comes to cyber insurance. Look carefully at what you really need and which provider suits you best. Pay particular attention here:
- The premium (which is usually between €10 and €40 per month for self-employed workers)
- The deductible and what is the maximum amount reimbursed
- What security you are required to have (such as antivirus or backups)
- Whether there is help for problems (such as support for a crisis or attack)
Conclusion
For self-employed people who work online or handle customer data, cyber insurance is certainly not an unnecessary luxury. After all, digital risks are increasing and a small mistake can cause major problems. With cyber insurance you are stronger and better protected financially against the consequences of cyber incidents. So be well informed. And also compare what different insurances offer. That way you can be sure it suits your business.
