Skip to content
1st Source Bank Logo 1st Source Sign In
  • Personal
    • Personal Home
    • Banking
      • Online & Mobile
      • Checking Accounts
      • Savings Accounts
      • Credit Cards
    • Borrowing
      • Personal Loans
      • Home Loans/Mortgage
      • Auto Loans
      • Loan Calculators
    • Planning
      • Certificates of Deposit
      • Wealth Management
      • Insurance
      • Investing
    • Help & Support
      • LEARN MORE
        • Help Articles
        • Advice Articles
        • FAQ
        • Personal Calculators
      • GET IN TOUCH
        • Talk With Someone: (574) 235-2000
        • Toll Free: (800) 513-2360
  • Business
    • Business Home
    • Banking
      • Online & Mobile
      • Business Checking Accounts
      • Business Savings Accounts
      • Business Credit Cards
    • Borrowing
      • Business Loans
      • Business Leasing
      • Industry Loans
    • Services
      • Treasury Services
      • Retirement Plan Services
      • Insurance
      • Merchant Card Services
      • Succession Planning
      • Small Business Banking
    • Help & Support
      • LEARN MORE
        • Help Articles
        • Advice Articles
        • FAQ
        • Business Calculators
      • GET IN TOUCH
        • Business Banking Online Support: (800) 399-5592
        • General Guidance: (574) 235-2003
  • You 1st
    • You 1st Home
    • Financial Education
    • Advice
    • Calculators
    • Community
  • Locations
  • About
  • Contact
  • Search
Sign In
Advice

Business

Protect Your Business with Cyber Insurance

Share:

Facebook Icon Facebook Twitter Icon Twitter Linkedin Icon Linkedin
Senior carpenter working on his laptop in shop.

Is your small business protected against cyber-attacks? Do you feel like you just can’t afford to pay for security measures? Well, the better question may be, can you afford not to invest in security measures?

As computer technology becomes more and more critical in the daily operations of most businesses, the threat level grows. Many small business owners are investing in the financial protection and risk management services available through cyber insurance policies.

Small Businesses Become Targets

Small businesses have become targets for cyber-attacks and there are several reasons why. First, they’re less likely to have dedicated cyber security teams than their larger counterparts, so hackers consider them an easier target. Similarly, a lot of small businesses don’t have the staff to update their software regularly, potentially making them vulnerable to threats that larger companies have addressed.

And because a lot of small companies provide services to large enterprises, they’re often targeted by hackers to get past the large company’s cyber defenses. In fact, many large companies now require cyber insurance in their contracts with smaller service providers and vendors.

Risky Business

Beyond hackers, cyber liability risks can emerge if data is disclosed because of employee error, a phishing or identity theft incident, or someone losing a laptop or phone with customer data stored on it.

In addition, traditional liability policies are designed to respond to physical risks, not digital ones. Your business owners’ package (BOP) or general liability policies will, for example, exclude coverage for cyber-related risks (unless cyber coverage has been added to a package policy).

If you consider all these risks, cyber insurance can be a smart investment for any company that conducts business, stores data or accesses information online – which is pretty much all of us, right?

Understand The Coverage

While coverage and costs can vary according to a company’s size and industry, insurance tends to cover one of two forms (although some packages will combine both):

  • First-party insurance will cover direct costs associated with a breach. These may include the costs of notifying customers (which is required in many states), loss of income from a breach, and costs of replacing vulnerable technology. Policies may also cover the costs of investigating an incident, crisis management expenses, and cyber extortion costs.
  • The third-party coverage will cover defense costs if someone sues your company following a breach, settlement expenses, court-ordered damages, and related expenses.

1st Source Insurance offers cyber coverage, and we would love to talk with you if you have any questions. Please give us a call at 574-271-5200

Bottom Line

Regardless of the size of your company and the nature of the information you process or store, cyber insurance is worth discussing with your insurance professional to make sure your risks are being mitigated effectively.

Related Articles

  • Business · Oct 4th, 2022 Positive Pay is a Big Plus
  • Business · Oct 2nd, 2022 Succession Planning
  • Insurance · Oct 1st, 2022 Environmental Insurance
  • About 1st Source
  • Careers
  • Investor Relations
  • 1st Source Foundation
  • News
  • Community
  • Help & Support
  • FAQ
  • Report Fraud
  • Security
  • Get In Touch
  • Contact
  • Locations
  • 1st Source Bank Routing Number
  • 071212128
  • Facebook Icon Facebook
  • Twitter Icon Twitter
  • Linkedin Icon Linkedin
  • Youtube Icon Youtube
  • Instagram Icon Instagram
Member FDIC, Equal Opportunity graphics
  • Privacy
  • Disclosures
  • Terms of Use
  • Sitemap
  • Accessibility

2025 © 1st Source Bank. All rights reserved.

We use cookies and tracking technologies to enhance performance, improve functionality, and advertise. The data shared with marketing platforms through these technologies does NOT include financial information. For more details, see our Online Privacy Notice and Terms of Use.I understand