Cyberattacks are no longer just a concern for big corporations, they are hitting small and mid-sized businesses every day. Unfortunately, while most business owners understand the risk, many hesitate to add a cyber policy because it feels like “just another premium.” The reality? A cyber event can cost your business far more than the price of coverage. From data breaches to ransomware, recovery costs can quickly run into the tens or hundreds of thousands of dollars.
What’s Included in My Business Package Policy?
Many business owners assume they already have cyber protection through their Businessowners Policy (BOP) or Commercial Package. While it’s true that some package policies include a small amount of cyber liability coverage, it’s usually very limited. Typical package policy cyber endorsements provide limited coverage with low limits. This means that while your package policy may provide a cushion, it’s rarely enough to handle a real cyber incident.
How Is a Stand-Alone Cyber Policy Different?
A stand-alone cyber liability policy is built specifically to address today’s cyber risks. Unlike the limited endorsements in a package policy, a dedicated cyber policy can cover:
- Ransomware & Extortion Payments – Costs to deal with cybercriminals demanding payment.
- Business Interruption – Lost income if your systems go down due to a cyberattack.
- Data Recovery & Restoration – Expenses to restore or recreate lost data.
- Regulatory Fines & Penalties – If your business is found non-compliant after a breach.
- Liability to Third Parties – If client data is exposed and you’re sued.
- Access to Cyber Experts – IT forensics, breach response teams, legal counsel, and public relations support.
Why It Matters Now
Cyber incidents are only increasing, and hackers know that small businesses are often the easiest targets. Even one successful phishing email can trigger weeks of downtime and steep recovery expenses.
While a package policy endorsement might help with a small incident, it won’t protect your business if you’re locked out of your systems for days or face a six-figure demand. A stand-alone policy ensures your business has the financial support and resources to weather the storm.
Adding another policy might feel like an extra expense but compared to the cost of a major cyber event, it’s one of the most valuable investments you can make. If you’re unsure how much coverage your current package policy provides, or whether a stand-alone policy makes sense, our team is here to walk you through your options.
