How to save money on cyber liability insurance

One of the primary expenses that a small business might face is the cost of insurance. And if your business works within the digital world, you’ll not only have to purchase business insurance, but cyber liability insurance too. Although paying for this may seem daunting, there are a few measures that business owners can take to save money on their premiums over time.

 Identify the main cost

It’s important for you to be as familiar with your insurance policy as possible. You should know the ins and outs of the fine print and you should receive a breakdown of all of the costs you are paying towards your cyber liability insurance. Because pricing usually works on a case-by-case basis, it may not actually be clear what your money is contributing to. It’s a good idea to ask your financial adviser, broker or insurance brand to provide you with a breakdown so that you can identify the areas that are costing you the most. That way, you can actively work to lower these costs by being proactive and taking extra measures. Educate your team on what you’re aiming to achieve and why.

Reduce your risk

Even the most careful businesses can still leave themselves vulnerable to breaches or data issues. However, if you take the time to assess your business and reduce your risk by engaging in proactive and preventative measures, you could reduce the cost of your cyber liability premiums over time.

If your cyber liability insurance is part of a greater business insurance policy that simultaneously protects your physical property and staff, then you may be able to cut costs in these areas too. By installing greater security measures for your premises and ensuring that your employees are properly trained, you may be able to lower the chance of mistakes or consequential accidents occurring.

Check what you’re covered for

You might not necessarily need everything that you’re covered for within your policy. It’s a good idea to regularly review your policy to check what you’re paying for and to confirm whether you’re receiving the best possible value. Upon review, you may notice that you don’t necessarily need everything included in your policy and you may be able to opt out of certain inclusions.

Compare policies online

Comparing business insurance policies is one of the best ways to see what else is on offer for a cheaper price. As with many other insurance products, you don’t necessarily have an obligation to stick to one brand for an extended period of time. If you compare online and find another product that offers you better value or a cheaper premium, look into it and consider switching. Comparing policies also allows you to get a bird’s-eye view of the industry so that you can see where your policy sits in comparison to others in terms of the value you’re receiving.

Cyber liability insurance can be expensive, but it’s worth it for the peace of mind. If you involve your team and collaboratively work towards increasing your business’s security, you should be able to cut costs.

Richard Laycock is an Insurance Expert at finder.com.au, Australia’s most visited comparison website.

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