Whether you run an entirely online business or only ever touch a computer to check email, nearly all modern companies carry at least some cyber risk. Though storing data and performing other operations virtually has largely made life easier for many business owners, sadly it’s also introduced a host of new potential threats. Luckily, a South Carolina independent insurance agent can get your business equipped with the right coverage. That means cyber liability insurance.

What Is Cyber Liability Insurance?

No matter where you’re based, cyber liability insurance is essentially a contract between a business or individual and an insurance company in which the insurer agrees to cover losses from liabilities and other costs relating to various cyberattacks. Cyber liability insurance has started to be offered with standard business insurance policies in South Carolina due to the growing importance and relevance of this coverage.

Though you may not think your business is extremely technical, with just an Internet connection you’re vulnerable to attacks by cybercriminals. Many business owners have unfortunately had to learn the hard way how crucial having coverage really is. It’s best to just be proactive about protecting your business, which means getting set up with a cyber liability policy ASAP.

What Does Cyber Liability Insurance Cover in South Carolina?

For starters, cyber liability insurance protects businesses that store sensitive information or data electronically, make any kind of transactions through the use of the Internet, and many other scenarios involving computers. Though your policy may vary slightly, there are a handful of core coverages offered by many cyber liability insurance policies in South Carolina.

A combination of the following types of coverage is available under most cyber liability policies in South Carolina:

• Loss of income: In the event your business’s operations are suspended or limited due to data breach or other cyberattack issues and your business suffers a hit in profits because of it, cyber liability coverage can help replace lost revenue.
• Costs due to damaged reputation: When news of cyber breaches leaks to consumers, businesses almost always take a hard hit, at least temporarily. Cyber liability insurance may help provide public relations protection for your business to help keep the media as quiet as possible.
• Legal expenses: Should your business end up with a lawsuit if customers sue you after their personal information gets stolen, or even if a bank sues you for having to cancel their customers’ stolen credit card information, coverage can pay for things like attorney, court, and settlement fees.
• Hired professionals: Often businesses have to bring in professional programmers or other computer experts to help them repair the damage to their computer systems, including removing malware and patching up other holes in security.

Take note that cyber liability policies are not standard across the board, so depending on which insurance company you go through, you may be offered different coverage options to pick and choose from. Cyber liability policies in South Carolina are generally so flexible you can choose coverage limits and deductible amounts as well.

What Does Cyber Liability Insurance Not Cover in South Carolina?

While cyber liability provides a lot of protection, unfortunately it can’t cover absolutely everything. Though there are some non-covered perils that are pretty common across the spectrum of available policies such as intentional acts, dishonesty, and regulatory/statutory penalties, specific exclusions vary greatly. Since cyber liability policies aren’t standard, neither are their exclusions.

Depending on the types of coverages you and your South Carolina independent agent choose to assemble your cyber liability package with, you’ll also create a list of exclusions specific to your policy. Your agent will be able to help answer any questions or concerns you have regarding non-covered perils under your cyber liability insurance.

Do I Need Cyber Liability Insurance in South Carolina?

While not technically required by law, the answer is still yes, you really do need it to protect your business in today’s world. The major benefit of cyber liability insurance is the sense of security and peace of mind that having coverage brings with it. Since most all modern businesses are vulnerable to cybercrime, having protection is an absolute must. Really though, there are several pros to having coverage.

Having cyber liability insurance in South Carolina offers the following benefits:

• Protection for your business’s sensitive data: The last thing any business owner wants is the passwords of their important accounts to be stolen, or for these accounts to be hacked. You may also have other sensitive information such as private medical records that you want to keep safe. Cyber liability coverage can help protect businesses financially in the event of a breach, as well as help pay for hired help to increase virtual security measures.
• Protection for your employees’ personal records: Businesses have to store all kinds of personal information about their employees, including Social Security numbers, bank account information, and more. If your system gets hacked and this information is leaked, it can cause all kinds of trouble and be very expensive to fix. Fortunately, cyber liability coverage can help.
• Protection against liabilities: If sensitive information gets stolen and sold to third parties, you’re likely to end up with a lawsuit on your hands on top of the mess. For example, in the event credit card data gets stolen, you’re legally obligated to report the breach to the affected banks, who may very well sue your business. Cyber liability coverage can help prevent your business from dipping into the red following a lawsuit.
• Protection against delayed operations: Many businesses are simply not functional without their computer systems, while many others depend on computers for at least part of their operations. Without adequate cyber liability coverage, a business could face a long shutdown while awaiting repairs to their system, costing them tons of revenue.

Cyberattacks can cost businesses or individuals in South Carolina hundreds of thousands of dollars in a myriad of different ways, so having cyber liability protection is crucial to keep up with increasing security demands.

How Much Does Cyber Liability Insurance Cost in South Carolina?

Just like any other type of insurance, the cost of your policy will depend on a number of different factors, including the size of your business and its annual gross revenue. However, smaller companies in South Carolina with relatively basic computer operations might pay less than $1,000 annually, while large tech giants with all kinds of security needs might pay closer to $10,000 or even more per year. Your South Carolina agent can help fill in the blanks.

Why Work with a South Carolina Independent Insurance Agent?

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. And who could be better for the job than a local agent who shares your area code? Independent insurance agents act as your own personal insurance shoppers, offering you tons more options than one-policy companies. With just one call, they’ll hook you up with multiple quotes.

South Carolina independent insurance agents are armed with knowledge on what coverage is needed in your area, and they’ll get you set up with just enough of it — not too little, not too much. They’ll handle all the heavy lifting so you can rest assured you’ll be set up with the right coverage at the right price.

They’re not just there at the beginning either. If disaster strikes, your South Carolina agent will be there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to. Now that’s thinking ahead.