Cyber Coverage for Limited Partnerships

Limited partnership

Did you know that nearly 60% of cyberattacks target small and medium-sized businesses? Is your business prepared if it encounters a cyberattack?

If your limited partnership doesn't have a plan in place for dealing with cyberattacks at the moment, you might want to change that. You might also take it upon yourself to pick out a cyber insurance policy that can provide your company with the protection it is looking for.

If you don't have cyber risk coverage, a single cyberattack could end up costing your company a significant amount of money. It's one of the main reasons why you should be proactive about helping to protect your business from cyberattacks and consider having a cyber insurance policy in place just in case one occurs.

So, what is cyber insurance? What does cyber insurance cover? And who could benefit from cyber insurance?

Discover what you might want to know about cyber insurance below.

What Is Cyber Insurance?

Cyber insurance is also sometimes referred to as cyber risk insurance or cyber liability insurance. Cyber insurance policies have only been around for a little over 25 years now.

But in a relatively short period of time, cyber insurance has turned into an important type of coverage for businesses. Almost every limited partnership should at least consider securing a cyber insurance policy, if they store customer or employee information online.

Cyber insurance is specifically designed to help protect businesses from the financial consequences that can come along with cyberattacks, data breaches, and other computer-related crimes.

What Does Cyber Insurance Cover?

In the event that your limited partnership is ever the victim of a cyberattack, you might be surprised to see how many expenses you could face in the aftermath of it. A cyberattack will no doubt put your business data security at risk, but it could also compromise your company's financial well-being if you're not careful.

For example, your company might face expenses related to investigating a cyberattack. You might also face expenses associated with notifying your customers and clients about a cyberattack. You could even face legal expenses, if a cyberattack puts you in a position where your customers and clients choose to take legal action against you.

Cyber insurance may be able to help cover these expenses and can make dealing with a cyberattack more manageable. At the very least, you might not have to worry about how you're going to cover the costs that are sure to come along with a cyberattack and affect your limited partnership.

Who Can Benefit From Cyber Insurance?

If you run, say, an HVAC company, you might not think that cyber insurance is necessary for your limited partnership. But guess what? Your company is just as likely to get hit by a cyberattack as other companies.

For this reason, an HVAC company should explore the idea of picking out a cyber insurance policy. There are also many other companies that may be able to benefit from having this type of insurance policy.

Here are just a few of the kinds of companies that might want to look into securing cyber insurance:

  • Contractors
  • Cleaning companies
  • Food services
  • Landscapers
  • Accounting firms
  • Medical offices
  • Personal care services
  • And more!

Generally speaking, your limited partnership should consider carrying a cyber insurance policy if you routinely collect personal and/or financial data from customers and clients and hold onto it. This could make you a target for hackers.

It's a big part of the reason why PolicySweet® offers cyber insurance as part of our Business Owners Policy, better known as BOP insurance, along with general liability and property insurance. Obtaining a BOP can help protect your business against multiple risks.

What Makes Cyber Insurance Important?

If your limited partnership is ever targeted by hackers, it can appear to be a little more than an inconvenience at first. A cyberattack might prevent you from being able to access your business data and force you to bring your operation to a halt for the time being.

But even once you're able to regain control of your operation, you may still find yourself in a very precarious position. You may have to pick the pieces up after a cyberattack and hope that it doesn't leave you in a poor financial situation. But it could very well cost you more money than your company can afford to pay to recover from a cyberattack fully.

Cyber insurance can make it possible for you to limit the impact a cyberattack has on your limited partnership. You might be able to rebound from it better than you would be able to otherwise, since cyber insurance can help cover many of the costs that you would usually have to foot the bill yourself.

How Much Does Cyber Insurance Cost?

The cost of cyber insurance can vary quite a bit based on a bunch of different factors. The industry that your company operates in, for instance, can affect the price you'll pay for cyber insurance. The size of your company can also have a lot to do with how much cyber insurance can cost you.

A few other factors that can affect the cost of cyber insurance include:

  • The kind of data that your company collects
  • The perceived risk associated with your company's data
  • The number of employees who work for your company
  • The insurance claims history for your company

Contact Us to Obtain Cyber Insurance for a Limited Partnership

Is your limited partnership operating without a cyber insurance policy right now? You should think about changing that to help minimize the damage that could potentially impact your company by a cyberattack.

PolicySweet can provide you with a quote for cyber insurance as part of a Business Owners Policy. We can show you how much a policy can be and help you learn more about what this type of coverage can offer.

Go get a quote for cyber insurance today.


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