Cybersecurity Insurance: Protection for your home inspection data.

As a small business owner, the word “theft” is a thing of nightmares. It probably inspires images of someone breaking into your work vehicle and stealing your pricey drone, camera, laptop, or sewer scope. (We’ve covered this exact scenario in a past equipment coverage case study.) Perhaps you’ve wondered what would happen if your inspector-employee stole from a client. 

These kinds of crimes are so top of mind, we offer unique policies just for equipment and employee theft. But there’s another kind of policy you may not think of right away: a cybersecurity insurance policy.

What is a cybersecurity policy?

Cybersecurity insurance protects you from losses you endure after a cybercriminal attack. These attacks often target the credit cards, addresses, bank accounts, names, and other personal and financial information you traffic, as well as money and any connections you have to larger companies, Comcast explains in their article. 

According to Kaspersky, a cybersecurity company, cyber attacks typically involve someone criminally targeting your electronic data, networks, or devices, and also someone using technology to commit crimes—sometimes even crashing your own network or computer. Cybercriminals might lure you into a virus or malware trap through malicious links, ads, pop-ups, or email attachments, the Comcast article explains. Alternatively, they might use ransomware to hold your computer, software, or data hostage until you pay a ransom. Without precautions, these attacks can temporarily or even permanently put someone out of business.

That’s where cyber liability coverage comes in handy. We elaborate on why cyber protection insurance is worth it for home inspectors, what our cybersecurity insurance policy covers, and what our policy excludes below.

Is cyber protection insurance worth it for small businesses like yours?

Cyberattacks are a growing problem for small business owners like home inspectors, writes Komron Rahmonbek in a StrongDM article. Phishing campaigns and espionage become more sophisticated, and cloud networks open up more vulnerabilities, adds Florida Tech University. Another part of the problem is that people assume hackers only target giant corporations. They believe their data or revenue isn’t valuable enough to draw attention.

Statistics, however, tell a different story. Rahmonbek writes that 700,000 small businesses were attacked in 2020 alone, racking up about $2.8 billion in damages. About 95 percent of attacks cost small businesses $826 to $653,587 each, he continues. 

Because the majority of small company owners don’t understand the risk, very few are prepared. According to Rahmonbek’s article, the resulting fines, lawsuits, and lost business racks up more financial setbacks than most of these companies can afford. More than half go out of business altogether after suffering a cyberattack, Terranova Security shares in their statistics. With cybersecurity insurance, victims don’t have to shoulder all this responsibility alone.  

Is cyber protection insurance worth it? Absolutely. With the kind of data home inspectors handle, you can’t overlook the value of a cybersecurity policy for small businesses like yours. (Not to mention, this coverage is required for some franchisees.)

Still, we realize the concept of a cybersecurity policy seems a little confusing—perhaps even “phishy.”  Let’s clarify what exactly our data theft insurance does and does not cover.

What does cybercrime insurance cover?

Here at InspectorPro, our cybersecurity insurance policy covers first and third-party losses.

First-Party Losses

If a cyberattack targets your business, first-party losses are those you, the policy’s insured, directly suffer. Our cybersecurity policy covers the following expenses:

• Ransomware insurance: Payments from responding to ransomware or extortion demands.
• Data and system recovery: If your computer system was harmed or compromised from a cyberattack, it covers costs to restore its prior functionality. This also includes expenses from restoring any damaged software or data.
• Business interruption: Cyberattacks can slow down or half your operations as a small business. Our cybersecurity insurance protects from lost income and other expenses.
• Business interruption from suppliers: What if a vendor or supplier you work with suffers a cyber attack? You’ll receive coverage for any expenses or losses you incur from their attack.
• Reputational harm: Lost income from a cyberattack harming your business’s reputation.
• Cyber incident response: Responding to cyber events can be costly. We’ll cover legal and computer forensic services, credit monitoring, notification of affected individuals, and even public relations expenses.
• Cyber deception: This cyber liability coverage is optional. It includes costs from phishing attacks and telecommunications fraud related to impersonations or social engineering.

Third-Party Losses

What else should be included in a cyber security policy? Here at InspectorPro, our cybersecurity insurance policy also covers any third-party liability. In other words, if a cyberattack draws in a third party, your business will receive defense against any claims they file against you. This also covers:

• Regulatory fines: If your home inspection business violates privacy regulations or suffers a cyber event, you don’t have to pay fines or penalties alone.
• Payment card penalties: Do your clients pay for inspections with credit cards? If someone steals your past clients’ credit card information, and those cards are falsely charged as a result, get peace of mind in answering to their credit card companies. We offer coverage for forensic investigation costs, fines, penalties, and assessments you might owe.
• Media liability: Lastly, a cybersecurity breach could lead to data getting stolen and published elsewhere, like on websites, printed materials, and other media. In this case, clients’ personal information or photos from the inspection might get leaked, and they might sue your inspection business. Third-party cyber liability coverage includes your defense for any lawsuits or settlements from the unauthorized release of third party media.

What does a cyber policy not cover?

What does a cybersecurity insurance policy exclude? Our cybersecurity policy primarily excludes:

• Losses or damages covered by other types of insurance, like general liability insurance.
• Deliberately fraudulent, criminal, or malicious acts by managing members of your inspection business.
• Any violations of rules, regulations, or legislature listed in the cybersecurity insurance policy. This includes claims brought by government entities.
• Costs to maintain or improve security or computer systems within your home inspection business.

For a full list of exclusions, check your policy.

How much does a cybersecurity policy cost?

At InspectorPro, our cybersecurity insurance policy typically costs around $800 to $1,300 annually.

How can I get a cybersecurity insurance policy?

Interested in a cybersecurity policy quote? Please contact your InspectorPro broker or account manager to get started. Or send your questions in a contact form. We’re happy to discuss how cyber liability coverage can take your data security to the next level.

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