As businesses increasingly rely on digital operations, the risk of cyber attacks has become a prevalent concern for many entrepreneurs. In this blog post, we will explore the coverage provided by business owner policies (BOPs) and whether they include protection against cyber attacks.
What is a Business Owner Policy (BOP)?
A Business Owner Policy, or BOP, is a comprehensive insurance package designed to provide small and medium-sized businesses with a range of coverage in a single policy.
Typically, BOPs bundle property insurance, liability insurance, and business interruption insurance into one policy, offering convenience and cost-effectiveness for business owners.
Does a Business Owner Policy (BOP) Cover Cyber Attacks?
Although this foundational coverage is essential for safeguarding your business, it doesn’t typically cover cyber attacks.
Traditionally, BOPs have been focused on providing coverage for physical assets such as buildings, equipment, and inventory, as well as liability protection in the event of property damage or bodily injury.
Although specifics may vary from policy to policy, the coverage of a classic BOP usually includes three basic categories of protection:
- Property damage
- Business interruption
- Liability insurance
Evolving Risks
In today’s interconnected digital landscape, businesses are vulnerable to cyber threats that can result in data breaches, financial loss, and reputational damage.
Cyber attacks encompass a wide range of malicious activities, including hacking, phishing, ransomware, and denial-of-service attacks, all of which can disrupt business operations and compromise sensitive information.
Cyber Coverage Options
Recognizing the increasing prevalence of cyber threats, some insurance providers offer dedicated coverages that address cyber risks.
These policies (known as cyber liability insurance) may include coverage for data breaches, network security liabilities, cyber extortion, and expenses related to data recovery and notification of affected parties.
By purchasing cyber coverage, business owners can better protect themselves against the financial impact of cyber attacks.
Delgado’s Insurance: Dependable Insurance in California
If you need dependable and affordable insurance in the Golden State, look no further than Delgado’s Insurance.
We have locations in Riverside, California, and Bloomington, California. Get in touch today by telephone (951-361-0084, 909-421-9003), email (mail@delgadosinsurance.com), or through our social media accounts (Facebook, Twitter and LinkedIn)!
