Cyber insurance for sole traders

What is cyber insurance?

Cyber insurance protects you against damage caused by digital incidents. These are situations such as a hack, data breach, virus or ransomware. The insurance helps restore your systems and reimburses costs incurred due to the incident. This usually includes professional support. Think of IT specialists restoring your laptop or network so you can continue working quickly. Legal help may also come along if you need to report a data breach. Some policies cover loss of turnover if your business temporarily shuts down due to an attack. The coverage varies between insurers but the objective is the same. You get help and compensation when you are hit by cybercrime.

Is cyber insurance necessary?

Whether you need cyber insurance depends on your digital risks. The government advises entrepreneurs to determine how much damage they can bear. Consider costs for recovery, legal assistance and lost sales. The more your business works digitally the greater the consequences in the event of an incident. Some clients expect you to have cyber security in place. Cyber insurance is not mandatory but it is wise if a cyber-attack would bring your work to a halt or if your company does not have enough reserves to cope with that damage. Ask yourself a few questions. Can you work without a laptop or systems for a week? Can you pay legal fees yourself in the event of a data breach. If you cannot say yes, cyber insurance is relevant.

Business and private

Private insurance does not cover business cyber incidents. You need business cyber insurance for this. Conversely, this works the same way. Your business policy does not cover private digital damage. You therefore always check exactly what cover you have. Some basic business insurance policies include a small cyber cover as standard. For full protection, separate cyber insurance is usually needed.

What is covered?

Cyber insurance has several components that work together to help mitigate damage and recover quickly after an incident. The exact coverage varies from policy to policy, but this is usually common.

• Recovery of systems and data, such as restoring files and removing malware
• Technical support in cleaning up and rebuilding your digital environment
• Legal help with liability and obligations around data breaches
• Support in communication towards customers and other stakeholders
• Guidance on reporting a data breach to the regulator
• Compensation for damages to customers adversely affected by the incident
• Coverage of lost sales when your business temporarily shuts down

You choose which package suits your operations and digital risks.

Additional covers

Extra cover often includes 24/7 help. You get access to technical experts who think along directly. Some insurers offer training to be more aware and secure online. You can also get help with digital research after an incident. This allows you to see what happened and how to prevent it.

Risks for zzpers

As a zzper, you often have less digital security than larger companies. As a result, cybercriminals can hit you more easily. Think ransomware that blocks your files. Phishing that steals money or data. A data breach that damages your reputation. Many attacks are automated so you can be targeted without anyone specifically choosing you. The damage can include missed jobs, recovery costs and lost time. When you don't have backups, an incident can have long-lasting consequences. Cyber insurance helps with these risks. You get support and compensation so you can get on with your work faster.

Cost of cyber insurance

The premium depends on your turnover, industry and chosen cover. The higher your risk and sum insured the higher your premium. Small business owners often pay between €20 and €70 per month. Some insurers incorporate cyber cover into existing policies. Then you only pay extra when you want to insure a higher amount. You look not only at the price but mainly at the content. What is covered. What help will you get. What is the deductible. By comparing in advance, you avoid having too little cover later.

Cyber insurance comparison

You compare cyber insurance policies on coverage, services and costs. You look at liability, own damage, crisis management and speed of assistance. Some insurers focus on prevention. Other insurers on immediate compensation. Below is a comparison table of reliable parties offering cyber insurance for self-employed people.

These differences will help you determine which policy is right for you. Hiscox offers broad business cover. Univé offers basic cover in existing policies and lets you expand when needed. Allianz focuses on prevention thanks to a risk scan and 24/7 assistance. You choose an insurer based on risks, budget and desired service.

Applying for cyber insurance

You apply for cyber insurance when you want to cover your digital risks. Before your application, check your security. Insurers expect basic tools such as antivirus software and backups. Some insurers make you fill in a questionnaire to assess risks. Then you choose a package and request a quote. You read the terms and conditions and check exclusions. If you agree, you take out the policy. In case of an incident, you contact the emergency service immediately. That way, you limit damage and can get on with your work quickly.