Most business owners know about general liability coverage and property coverage. Both are part of a standard business insurance policy. But every policy has a specific purpose. Each policy insures against a defined set of risks.
In today’s market, cyber risks are a bigger concern than ever and it’s not just big businesses at risk.
What is a cyber risk?
Cyber risk insurance addresses several concerns. Nearly every business stores customer information. Even if your business doesn’t store data, someone can steal customer information while in transit or through other means. Imagine what could happen if hackers gained access to your computers or your network, the same network you use to process payments.
Cyber risk coverage covers risks for both your business and risks for your business partners or customers.
The cost of putting the pieces together after a data breach can devastate a small business. There may also be liabilities to customers and other businesses. Notification costs can add to the expense.
A standard business insurance policy doesn’t cover these risks. However, some policies offer cyber risk coverage as an add-on. In other cases, a standalone cyber risk policy may be a better way to protect your business.
What does cyber risk insurance cover?
You can customize your policy most times, particularly your coverage limits. This means you don’t have to pay for more coverage than you need.
Here are some risks your policy may cover:
Data breaches
Data recovery
Cyber extortion
Business interruption
Computer attacks
Your coverage can also protect your business against liability to others. Consider the following:
Legal defence costs
Legal settlement costs
Damage to other networks or computers

Getting your business covered
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Cyber risk insurance is often less expensive than you might think. But the costs of not having coverage can put your business at risk.
Many businesses are similar but even within the same industry, each business is unique. Each has different security measures in place and each has unique exposures.
To properly insure your business against cyber risks, reach out to your agent or broker to discuss your needs. Together, you can build a customized solution that protects your business and fits your budget. The first step in protecting your business is to have a candid conversation.

Apple has continued to prosper after Steve Jobs’ passing, partly due to his legacy, but if Apple were a smaller, younger company when he passed, would its future be as bright? Would the iPhone, iPad, or MacBook exist? Steve Jobs was a Key Person, the type of employee or partner who is essential to the future of a young company in its current structure, and who may be difficult to replace. Losing a key person unexpectedly can expose a growing business to new financial risks – and this is why Key Person Life Insurance exists. Without a key person, the future of the company may be either impaired or uncertain, either of which can result in a financial loss for the business.

Here’s how a Key Person Life Insurance policy works:
• The business purchases a policy on the key individual or individuals.
• The business is the beneficiary for the policy and owner of the policy and must demonstrate an insurable interest, which just means showing the business would suffer a financial loss due to the sudden death of the key person.
• If the event of the death of the key person, the business can use the tax-free settlement to fund the loss of profit or loss of revenue while searching for a replacement or training a replacement.

Like most life insurance policies, premiums are based on several health factors of the key person, including their age, medical history, and physical condition. The insured amount, also called the benefit amount, will drive premiums as well.
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Discuss your business insurance needs with your broker, sharing the details of the business structure and the role of the key person. In some cases, you may have the option to transfer the key person life insurance policy to a departing key employee or you may be able to use the policy to insure another key individual if the original key employee retires.