Could a cyber slip-up leave your business unprotected?
Most business owners wouldn’t dream of skipping out on fire alarms or liability coverage but when it comes to cybersecurity, the risks are often overlooked. In today’s digital landscape, cyber threats are growing more frequent and more sophisticated, yet many commercial insurance policies don’t automatically cover them. Worse still, certain mistakes or oversights in your cybersecurity setup could make your coverage invalid when you need it most.
Why Cybersecurity Matters for Your Insurance
As cyberattacks become more sophisticated and more frequent, insurers are tightening the rules. It’s no longer enough to just have a general liability policy. Many carriers now expect businesses to meet minimum cybersecurity standards, especially if you handle sensitive information or accept wireless payments.
“Carriers are starting to require things like multi-factor authentication and data backups,” says Chris from Mitchell Insurance Group. “If you’re not doing those basics, you may not even qualify for coverage.”
Industries at Higher Risk
While every business has digital vulnerabilities, certain industries are especially exposed:
- Medical offices manage HIPAA-protected data and appointment systems
- Apartment complexes store tenant data, payment info, and access control
- Contractors often rely on mobile payments, online invoicing, and third-party apps
And yet? Most commercial clients still don’t have cyber insurance.
Coverage Gaps You May Not See
Cyber incidents aren’t always covered under a general liability policy. That means a single phishing email, ransomware attack, or data breach could leave you footing the bill unless you have the right protections in place.
Whether you’re exploring a standalone cyber policy or a cyber add-on to your existing commercial package, it’s critical to align your coverage with your actual risk exposure.
If you’re not sure how cyber fits into your existing policy, check out our article on General Liability vs. Professional Liability: Which One Do You Need? – it’s a great place to start.
A Quick Reminder: Insurance is Not One-Size-Fits-All
Every business is different. That’s why our team takes the time to understand your risk profile and recommend policies that actually protect your operations.
If you’re based in Colorado, our Colorado Commercial Insurance Guide for Small Businesses offers a more detailed breakdown of what to look for in your coverage.
Common Mistakes That Could Cost You Coverage
Here are just a few of the issues we see that could jeopardize your policy:
- Skipping regular system backups
- Not enabling multi-factor authentication (MFA)
- Using outdated software or unsupported operating systems
- Failing to train staff on phishing or fraud prevention
These may sound small, but they can be the difference between a covered claim and a denied one.
What Mitchell Insurance Can Do
We help businesses assess their risks, understand coverage requirements, and get the right protection whether it’s a bundled policy or a dedicated cyber solution. Our team stays current on what carriers require so you don’t get caught off guard.
Need to update your policy or explore a better fit? Start here: Update Your Business Insurance: What Colorado Owners Should Know.
FAQs
Do I need cyber insurance even if I have general liability coverage?
Yes. General liability typically won’t cover data breaches or cyberattacks. You’ll need a standalone or add-on cyber policy.
Will my insurer tell me what cybersecurity steps I need to take?
Not always. That’s where your insurance agent comes in, Mitchell Insurance helps clarify those expectations and find policies that match your protections.
What’s the cost of a cyber policy?
It depends on your business type, size, and digital exposure—=but many small businesses can add cyber coverage affordably to their commercial package.
Can I get coverage even if I’ve had a breach before?
Possibly. We’ll help evaluate your history, current protocols, and options from multiple carriers to find a fit.
Don’t assume your commercial insurance covers cyber threats.
Let’s review your coverage and find out what protections make the most sense for your business.
Schedule a call with our team to get started.
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