4 small business insurance policies to protect your digital operations

It’s rare to find a small business that doesn’t conduct at least some of its transactions and communications online. Computers, tablets and other digital assets serve as the backbone of modern small businesses.

That’s why it’s so important to insure the hardware, software and data that allow your small business to run smoothly. Without such coverage, you risk losing the tools and information that are most important. Here are 4 different kinds of insurance to consider to keep your business’ digital operations safe and secure:

1. Businessowners Policy (BOP)

A businessowners policy incorporates multiple forms of insurance into a single package, offering you protection from a variety of digital risks. You can customize your BOP with the different coverage options listed below.

2. Commercial property insurance (business property insurance)

Without properly functioning hardware, it’s almost impossible to carry out business operations quickly and efficiently. With a basic commercial property insurance policy you can protect your business’ physical assets from fires or explosions, theft and vandalism, as well as from damage from vehicles or airplanes.

If equipment such as a computer is damaged or stolen, you can receive payment based on its replacement cost or actual cash value. Another bonus: Your assets are protected whether you own or lease your property.

3. Cyber liability insurance

Your customers’ trust is crucial to your business’ reputation. So if a cyber attack were to expose your customers’ personal data to hackers, your business would likely struggle to bounce back. It’s a scary thought that has become all too real for many small business owners. According to Nationwide, 83 percent of business owners allow and offer employees the option to work securely from a remote location when needed and appropriate. Yet, only 50 percent of business owners have updated their remote work security policy in the past year.

Cyber security liability insurance protects not only your electronic data and computer systems from cyber attacks, but also your customers’ information. Data compromise coverage safeguards employee and customer data in the event that it is hacked, stolen or otherwise exposed as the result of a procedural error.

Another component, identity recovery protection, helps victims of identity theft recover from the breach of their personal data. It reimburses you for expenses including lost wages and legal fees. Lastly, cyber security liability insurance protects your small business from damages related to viruses and other computer attacks.

4. Equipment breakdown insurance (boiler and machinery insurance) or Data Processing Coverage

When hardware breaks down, your small business can come to a standstill. Depending on what equipment is damaged, you may be unable to send out orders, communicate with clients or retrieve data. There are a number of ways that could happen. A power surge could put your computer network on the fritz or an electrical system could short circuit, forcing your business to stall until you can restore power. Equipment breakdown insurance helps you recover from hardware-related interruptions to get back to your normal business operations.

Don’t let your small business suffer when equipment falters. Equipment breakdown insurance will reimburse you for the time and labor involved in replacing or repairing damaged equipment. It will also cover income losses and other expenses incurred from placing your business on hold. Talk to your agent to find the best options for covering your small business.