Businesses rely on data for just about everything these days, so it’s no surprise that data breaches are becoming more and more common. Data breaches, also called cyber attacks, occur when a hacker gets access to sensitive data and protected information that is stored on the internet, servers, computers, and personal devices.
Regardless of the size of your business, data breaches can be incredibly costly. Data breaches can happen to any organization, but they are especially common among small businesses that often lack robust security measures. To protect against potential breaches, I recommend that all business owners look into data breach insurance and consider adding it to their insurance portfolio.
What is cyber liability insurance?
Service
Average cost
Ongoing services Having consistent professional help can keep your yard clean and healthy. A well-maintained yard is good for wildlife and also motivates you to get outside more often and enjoy it, so it is a big deal! Lawn maintenance Ongoing lawn maintenance involves mowing your grass and weed whacking the edges of any hardscaping, like the sidewalk, driveway, and flower beds. The lawn maintenance company provides their own equipment, as well as any products that may be needed. In the fall, you can also add leaf removal services and have the collected leaves taken off-site by your maintenance crew. Costs vary depending on the size of your lawn and how intricate any weed whacking may be. According to HomeAdvisor, average prices range between $49 and $218. Depending on your weather, you may opt for weekly or bi-weekly service. The rainier it is in your area, the more frequent mowing may be needed. Pros of hiring a landscaper: Seasonal expense in many areas. During cooler-weather months you may not need to pay for lawn maintenance. Get on a schedule. Avoid tall grass by scheduling recurring services from your maintenance crew. Avoid paying for and maintaining lawn equipment. Upfront and ongoing maintenance costs for lawn mowers and weed whackers can quickly add up, especially compared to the relatively low cost of professional lawn maintenance. Cons of hiring a landscaper: Extra cost added to your monthly budget. Go the DIY path if your budget is already tight or you’re focused on important financial goals like debt payoff. A fixed schedule may not meet your lawn’s needs. Low rain could mean you’re paying for service even without tall grass. On the flip side, your lawn may be ready for a trim after heavy rain, days before your next mowing is scheduled. Bedding plants and installation Spending time in a yard filled with beautiful plants can give you countless hours of joy throughout the year. Plus, you’ll create a haven for all types of important insects, including pollinators. A professional landscaper can pick out plants that thrive in your area and in specific spots in your yard. You can also get advice on plants that work best for your preferred level of care, whether you want to invest the time to water and weed, pay to outsource those tasks, or focus entirely on low-maintenance plants in your landscape. The cost of getting a landscaper to choose and install plants ranges from $1,366 and $5,641. If your landscaped beds have become extremely overgrown, this expense may be worth the cost, but if you simply need to pop in some annuals to fill up space, this might be a better DIY project. Pros of hiring a landscaper: Create year-round interest. A landscaper’s expertise ensures your flower beds aren’t dull three out of the four seasons of the year. Choose the right plants based on water and sunlight needs. Avoid killing plants and wasting money by picking the right options for your yard’s conditions. Pick colors and textures that complement each other. A landscaper creates an overall theme, whereas a DIY approach may create competing colors, heights, and textures. Cons of hiring a landscaper: Can be costly. The expertise of a landscaper definitely comes at a price. You have less control over designs and colors. A DIY approach may be better if you have a very specific aesthetic you want to achieve in your yard. Disease and insect control Insects are a natural part of the garden’s ecosystem, but some bugs and diseases can actually harm your plants. There are many ways to mitigate these issues on your own, like promoting healthy soil and encouraging beneficial bugs that prey on the damaging types. For instance, ladybugs eat aphids, an insect that can cause major damage to vegetables, fruit, roses, and other flowers. But if you need help, a professional landscaper can manage these issues as well. Just be sure to ask about the products they use and the ingredients, especially if you grow edibles in your garden. Non-organic ingredients can be harmful to you, your plants, and beneficial insects. A standard pest treatment typically costs under $100, according to Thumbtack. Pros of hiring a landscaper: Fast and easy service. Outsource the work rather than trying to figure out what products and treatment you need. The expertise of specific disease and pest issues. Make sure you’re treating the right problem, so you don’t waste money on DIY “solutions” that just don’t work. Cons of hiring a landscaper: May use harmful ingredients. Ask what products the landscaper uses and check to see if the ingredients align with your needs, especially if you grow an organic garden or have outdoor pets. Less control over products and processes used. You need to trust the professional you hire. Tree services It’s important to regularly care for any trees near your house since they can cause damage to your home as they grow larger. The biggest issues are trees extending over your roofline and dead trees eventually falling. Regular tree maintenance includes pruning your trees to keep them disease-free and trimming away dead branches. Your trees will stay healthy, and you don’t have to worry about branches falling and hurting someone or something on your property. You can certainly buy the tools needed to care for your trees and take a DIY route, but you also need to learn about how pruning affects each tree and what time of year is best for curbing tree growth. Hiring a landscaper to do the job could very well keep your trees in better shape, not to mention help you avoid the risk of injuring yourself. Just be sure your tree service landscaper is licensed and insured in case they sustain an injury while on the job. The cost of having tree work done is dependent on how many trees are on your property, their size, and whether or not they need to be felled. Pros of hiring a landscaper: Trees safely pruned: Landscapers have the knowledge and experience to keep people safe. Avoid damage to surrounding property: Falling trees can cause damage to nearby houses, cars, or fences. A professional knows how to cut strategically so the tree lands where it should. Pick the best season for pruning. Pruning in some seasons spurs new growth, while other seasons are best for managing size. Utilize the right equipment for hard-to-reach places. Tall trees could require heavy equipment, like a cherry picker or scissor lift. Cons of hiring a landscaper: Can be costly for tall trees. Tree trimming is important, but will take a pretty big bite out of your budget. Unlicensed landscapers could be an insurance liability. An uninsured contractor who gets injured on your property could require you to file a claim with your homeowners insurance policy. One-time landscaping services In addition to ongoing lawn care, weigh the pros and cons of hiring a landscaper for one-time landscaping projects. Hardscape design and installation No matter what size your yard may be, a professional landscaper can help you design hardscaping to maximize its usability. This could be with decking, a stone patio, pergola, or other hardscape features. The design and installation are typically two different services. A professional landscape design for your outdoor space could range from $1,954 to $6,971. For the actual labor and materials, your costs vary greatly depending on the size, scope, and materials. These projects are typically better left to the professionals instead of a weekend warrior project, unless you have above-average DIY skills. For a homeowner with limited experience, you run the risk of unlevel patio stones or structurally unsound hardscaping if you attempt large-scale projects on your own. Plus, projects like decking typically require city or county permits and approvals. Pros of hiring a landscaper: Quality craftsmanship. Avoid the DIY “look” by using a detail-oriented landscaper. Faster results. Get your project completed all at once, rather than fitting it into your own busy schedule here and there. Cons of hiring a landscaper: Expensive costs. Expect to spend several thousand dollars for hardscaping projects. Potential need to manage multiple professionals. You may have to manage the landscape designer and installer separately. Landscape lighting Incorporating lighting into your landscape can add a magical nighttime ambiance to your yard. There are different levels of service depending on the property features you want to highlight in the evening. You could add uplighting towards the home to draw attention to unique architectural features or illuminate walking paths to see where you’re going in the dark. String lights for garden parties are also a popular upgrade when it comes to landscape lighting. Some of these projects are fairly simple to DIY and if you opt for solar-powered lights, you can especially save money since you won’t have to plan on an electrician having to wire anything. For bigger projects that do require re-wiring, you may want to hire a professional so you don’t hurt yourself. Electricity is not something that you should play around with. Costs vary on the type of lighting and how far your cables need to go from existing electric lines. Pros of hiring a landscaper: Safer than DIY. This is especially true if new electric cables are involved. You don’t want to set yourself up for a fire hazard. Cons of hiring a landscaper: Solar projects may be easier. In some cases, DIY projects may be simple if no new electrical cables are needed. Lawn and garden bed irrigation If your summers are marked by dry conditions or inconsistent rain, you might consider installing a sprinkler system for your grass and irrigation lines for your garden beds. Irrigation can keep your plants healthy all year long. If you’ve already invested in lawn seed and garden plants, this could be an important project. Plus, while the average drip irrigation system costs upwards of $2,000 for an entire acre, there are plenty of online DIY tutorials that can help you spend even less. In fact, if you’re willing to do some digging and connect some PVC pipes and soaker hoses, you could knock out this project for around $100 (depending on your garden size). A new sprinkler system might be pricy, but you can purchase a DIY kit if you feel confident in marking zones and digging trenches throughout your entire yard. Based on the mechanics involved, this would definitely be a project for more seasoned DIYers. Pros of hiring a landscaper: A quick process with limited mistakes. A landscaper can quickly get irrigation or sprinklers in place without digging into buried power lines or pipes. Minimal disruption to grass and other plants. Landscapers have tools to limit the disruption to your lawn, especially compared to you digging trenches by hand with a spade. Cons of hiring a landscaper: Small irrigation projects may be simple and inexpensive. You could certainly DIY raised bed irrigation or other areas that aren’t intrusive. Saving with a DIY approach When deciding which projects to complete on your own, start by evaluating your safety and skills. Selecting and planting plants takes a little research, that way you can make sure that you are planting them in the right place. That said, it can be a fun experience and much less expensive to tackle by yourself. Consult the staff at your local garden center to get ideas of what plants perform well in your area. If you make mistakes, you can always plant something new. For projects that have an element of danger involved, like trimming trees or building a deck, consider shelling out the money for the professional. You don’t want to risk building a faulty structure or mistakenly estimating where a tree could fall.
| Project | DIY cost | Professional cost |
|---|---|---|
| Planting | Cost of plants | $1,366 to $5,641 |
| Lawn maintenance | Average cost of lawn mower: $363 for push mower; $2,450 for rider mower Plus gas and maintenance costs |
$49 to $218 per visit |
| Deck construction | $8 to $10 per square foot | ~$25 per square foot |
Summary Some landscaping projects are easy to do by yourself over the course of a few hours, but others take a lot of time, effort, and skill. For some homeowners, it isn’t worth it to take the DIY route. At a minimum, hire out landscaping projects that may seem dangerous without the right tools or talent. From there, you can gauge how each project cost compares to your budget and timeline to find out if hiring a landscaper is, in fact, worth it for you. Read more: How Much Should You Be Saving For Home Maintenance? My Biggest Financial Mistake As A New Homeowner: Not Building Relationships With Local Service Providers – What is cyber liability insurance?” width=”648″ height=”364″ loading=”lazy”>
As the name suggests, cyber liability insurance protects your business against legal and financial fallout from cyber attacks. It covers things like your attorney fees and notifying customers of a breach, but I’ll talk more about that later.
There are lots of different types of data breaches, and a good cyber liability insurance policy will cover most of them. That includes standard data breaches, as well as ransomware attacks, DoS and DSoS attacks, phishing scams, malware, and more.
For the purposes of this article, I’m going to use the terms cyber liability insurance and data breach insurance interchangeably. Although these can be sold as two separate policies, they offer virtually the same coverages. Data breach insurance is sometimes less robust because it only covers your financial responsibility.
What does cyber liability insurance cover?
Cyber liability insurance covers business expenses related to a data breach or cyber attack. But there are actually two types of cyber liability insurance—first-party and third-party.
Here’s a look at what each of these policies covers.
First-party cyber liability insurance
First-party cyber liability insurance will cover your business’s immediate expenses after suffering a data breach. You can use your insurance coverage to pay for things like:
- Notifying customers of the breach.
- Credit monitoring services for affected customers.
- Fixing the vulnerability that caused the attack.
- Hiring a PR team for damage control and reputation management.
- Business interruption costs for the time that your systems were offline.
- Extortion money in the event of a ransomware attack.
Here’s an example of when first-party cyber liability insurance would come in handy. Let’s say you own an online clothing boutique, and a hacker gets access to your customers’ stored credit card information. In this case, your first-party cyber liability insurance would pay for you to notify the customers of the breach, offer free credit monitoring, and hire an IT professional to patch the system.
Third-party cyber liability insurance
Third-party cyber liability insurance specifically covers your business’s legal fees and court costs if a client or customer sues your company over a data breach that causes them financial loss. Here are some expenses that it will cover:
- Your lawyer fees.
- Court settlements with the third-party.
- Judgments if you are found responsible.
- Government penalties and fines if your business gets investigated or audited.
I’ll build on the example from above to illustrate how third-party liability insurance works. So, your customers’ credit card information was leaked, and let’s say that the hacker used one of those credit cards to buy a Ferrari. Naturally, the customer finds out, gets angry, and sues your business. In this case, third-party cyber liability insurance would cover all of your legal fees, as well as a settlement with the customer if you are found to be at fault.
What cyber liability insurance does not cover
Service
Average cost
Ongoing services Having consistent professional help can keep your yard clean and healthy. A well-maintained yard is good for wildlife and also motivates you to get outside more often and enjoy it, so it is a big deal! Lawn maintenance Ongoing lawn maintenance involves mowing your grass and weed whacking the edges of any hardscaping, like the sidewalk, driveway, and flower beds. The lawn maintenance company provides their own equipment, as well as any products that may be needed. In the fall, you can also add leaf removal services and have the collected leaves taken off-site by your maintenance crew. Costs vary depending on the size of your lawn and how intricate any weed whacking may be. According to HomeAdvisor, average prices range between $49 and $218. Depending on your weather, you may opt for weekly or bi-weekly service. The rainier it is in your area, the more frequent mowing may be needed. Pros of hiring a landscaper: Seasonal expense in many areas. During cooler-weather months you may not need to pay for lawn maintenance. Get on a schedule. Avoid tall grass by scheduling recurring services from your maintenance crew. Avoid paying for and maintaining lawn equipment. Upfront and ongoing maintenance costs for lawn mowers and weed whackers can quickly add up, especially compared to the relatively low cost of professional lawn maintenance. Cons of hiring a landscaper: Extra cost added to your monthly budget. Go the DIY path if your budget is already tight or you’re focused on important financial goals like debt payoff. A fixed schedule may not meet your lawn’s needs. Low rain could mean you’re paying for service even without tall grass. On the flip side, your lawn may be ready for a trim after heavy rain, days before your next mowing is scheduled. Bedding plants and installation Spending time in a yard filled with beautiful plants can give you countless hours of joy throughout the year. Plus, you’ll create a haven for all types of important insects, including pollinators. A professional landscaper can pick out plants that thrive in your area and in specific spots in your yard. You can also get advice on plants that work best for your preferred level of care, whether you want to invest the time to water and weed, pay to outsource those tasks, or focus entirely on low-maintenance plants in your landscape. The cost of getting a landscaper to choose and install plants ranges from $1,366 and $5,641. If your landscaped beds have become extremely overgrown, this expense may be worth the cost, but if you simply need to pop in some annuals to fill up space, this might be a better DIY project. Pros of hiring a landscaper: Create year-round interest. A landscaper’s expertise ensures your flower beds aren’t dull three out of the four seasons of the year. Choose the right plants based on water and sunlight needs. Avoid killing plants and wasting money by picking the right options for your yard’s conditions. Pick colors and textures that complement each other. A landscaper creates an overall theme, whereas a DIY approach may create competing colors, heights, and textures. Cons of hiring a landscaper: Can be costly. The expertise of a landscaper definitely comes at a price. You have less control over designs and colors. A DIY approach may be better if you have a very specific aesthetic you want to achieve in your yard. Disease and insect control Insects are a natural part of the garden’s ecosystem, but some bugs and diseases can actually harm your plants. There are many ways to mitigate these issues on your own, like promoting healthy soil and encouraging beneficial bugs that prey on the damaging types. For instance, ladybugs eat aphids, an insect that can cause major damage to vegetables, fruit, roses, and other flowers. But if you need help, a professional landscaper can manage these issues as well. Just be sure to ask about the products they use and the ingredients, especially if you grow edibles in your garden. Non-organic ingredients can be harmful to you, your plants, and beneficial insects. A standard pest treatment typically costs under $100, according to Thumbtack. Pros of hiring a landscaper: Fast and easy service. Outsource the work rather than trying to figure out what products and treatment you need. The expertise of specific disease and pest issues. Make sure you’re treating the right problem, so you don’t waste money on DIY “solutions” that just don’t work. Cons of hiring a landscaper: May use harmful ingredients. Ask what products the landscaper uses and check to see if the ingredients align with your needs, especially if you grow an organic garden or have outdoor pets. Less control over products and processes used. You need to trust the professional you hire. Tree services It’s important to regularly care for any trees near your house since they can cause damage to your home as they grow larger. The biggest issues are trees extending over your roofline and dead trees eventually falling. Regular tree maintenance includes pruning your trees to keep them disease-free and trimming away dead branches. Your trees will stay healthy, and you don’t have to worry about branches falling and hurting someone or something on your property. You can certainly buy the tools needed to care for your trees and take a DIY route, but you also need to learn about how pruning affects each tree and what time of year is best for curbing tree growth. Hiring a landscaper to do the job could very well keep your trees in better shape, not to mention help you avoid the risk of injuring yourself. Just be sure your tree service landscaper is licensed and insured in case they sustain an injury while on the job. The cost of having tree work done is dependent on how many trees are on your property, their size, and whether or not they need to be felled. Pros of hiring a landscaper: Trees safely pruned: Landscapers have the knowledge and experience to keep people safe. Avoid damage to surrounding property: Falling trees can cause damage to nearby houses, cars, or fences. A professional knows how to cut strategically so the tree lands where it should. Pick the best season for pruning. Pruning in some seasons spurs new growth, while other seasons are best for managing size. Utilize the right equipment for hard-to-reach places. Tall trees could require heavy equipment, like a cherry picker or scissor lift. Cons of hiring a landscaper: Can be costly for tall trees. Tree trimming is important, but will take a pretty big bite out of your budget. Unlicensed landscapers could be an insurance liability. An uninsured contractor who gets injured on your property could require you to file a claim with your homeowners insurance policy. One-time landscaping services In addition to ongoing lawn care, weigh the pros and cons of hiring a landscaper for one-time landscaping projects. Hardscape design and installation No matter what size your yard may be, a professional landscaper can help you design hardscaping to maximize its usability. This could be with decking, a stone patio, pergola, or other hardscape features. The design and installation are typically two different services. A professional landscape design for your outdoor space could range from $1,954 to $6,971. For the actual labor and materials, your costs vary greatly depending on the size, scope, and materials. These projects are typically better left to the professionals instead of a weekend warrior project, unless you have above-average DIY skills. For a homeowner with limited experience, you run the risk of unlevel patio stones or structurally unsound hardscaping if you attempt large-scale projects on your own. Plus, projects like decking typically require city or county permits and approvals. Pros of hiring a landscaper: Quality craftsmanship. Avoid the DIY “look” by using a detail-oriented landscaper. Faster results. Get your project completed all at once, rather than fitting it into your own busy schedule here and there. Cons of hiring a landscaper: Expensive costs. Expect to spend several thousand dollars for hardscaping projects. Potential need to manage multiple professionals. You may have to manage the landscape designer and installer separately. Landscape lighting Incorporating lighting into your landscape can add a magical nighttime ambiance to your yard. There are different levels of service depending on the property features you want to highlight in the evening. You could add uplighting towards the home to draw attention to unique architectural features or illuminate walking paths to see where you’re going in the dark. String lights for garden parties are also a popular upgrade when it comes to landscape lighting. Some of these projects are fairly simple to DIY and if you opt for solar-powered lights, you can especially save money since you won’t have to plan on an electrician having to wire anything. For bigger projects that do require re-wiring, you may want to hire a professional so you don’t hurt yourself. Electricity is not something that you should play around with. Costs vary on the type of lighting and how far your cables need to go from existing electric lines. Pros of hiring a landscaper: Safer than DIY. This is especially true if new electric cables are involved. You don’t want to set yourself up for a fire hazard. Cons of hiring a landscaper: Solar projects may be easier. In some cases, DIY projects may be simple if no new electrical cables are needed. Lawn and garden bed irrigation If your summers are marked by dry conditions or inconsistent rain, you might consider installing a sprinkler system for your grass and irrigation lines for your garden beds. Irrigation can keep your plants healthy all year long. If you’ve already invested in lawn seed and garden plants, this could be an important project. Plus, while the average drip irrigation system costs upwards of $2,000 for an entire acre, there are plenty of online DIY tutorials that can help you spend even less. In fact, if you’re willing to do some digging and connect some PVC pipes and soaker hoses, you could knock out this project for around $100 (depending on your garden size). A new sprinkler system might be pricy, but you can purchase a DIY kit if you feel confident in marking zones and digging trenches throughout your entire yard. Based on the mechanics involved, this would definitely be a project for more seasoned DIYers. Pros of hiring a landscaper: A quick process with limited mistakes. A landscaper can quickly get irrigation or sprinklers in place without digging into buried power lines or pipes. Minimal disruption to grass and other plants. Landscapers have tools to limit the disruption to your lawn, especially compared to you digging trenches by hand with a spade. Cons of hiring a landscaper: Small irrigation projects may be simple and inexpensive. You could certainly DIY raised bed irrigation or other areas that aren’t intrusive. Saving with a DIY approach When deciding which projects to complete on your own, start by evaluating your safety and skills. Selecting and planting plants takes a little research, that way you can make sure that you are planting them in the right place. That said, it can be a fun experience and much less expensive to tackle by yourself. Consult the staff at your local garden center to get ideas of what plants perform well in your area. If you make mistakes, you can always plant something new. For projects that have an element of danger involved, like trimming trees or building a deck, consider shelling out the money for the professional. You don’t want to risk building a faulty structure or mistakenly estimating where a tree could fall.
| Project | DIY cost | Professional cost |
|---|---|---|
| Planting | Cost of plants | $1,366 to $5,641 |
| Lawn maintenance | Average cost of lawn mower: $363 for push mower; $2,450 for rider mower Plus gas and maintenance costs |
$49 to $218 per visit |
| Deck construction | $8 to $10 per square foot | ~$25 per square foot |
Summary Some landscaping projects are easy to do by yourself over the course of a few hours, but others take a lot of time, effort, and skill. For some homeowners, it isn’t worth it to take the DIY route. At a minimum, hire out landscaping projects that may seem dangerous without the right tools or talent. From there, you can gauge how each project cost compares to your budget and timeline to find out if hiring a landscaper is, in fact, worth it for you. Read more: How Much Should You Be Saving For Home Maintenance? My Biggest Financial Mistake As A New Homeowner: Not Building Relationships With Local Service Providers – What cyber liability insurance does not cover” width=”648″ height=”364″ loading=”lazy”>
Cyber liability insurance is pretty comprehensive, but it doesn’t cover any expenses that are not directly related to a data breach or cyber attack. Every policy will include different covered losses, but here are some of the things that are generally never included in a cyber liability insurance policy:
- Third-party bodily injury liability claims.
- Third-party property damage liability claims.
- Employee fraud and theft.
- Criminal activity.
This might go without saying, but cyber liability insurance only covers your business. It doesn’t provide any protection for yourself as an individual. So, for example, if your personal data was exposed in the infamous Equifax cyber attack in 2017, you wouldn’t have any protection under your business’s cyber liability insurance policy. In this case, Equifax would use their data breach insurance to cover their losses and make things right with its affected customers.
There’s one very important point I want to make here. When you purchase cyber liability insurance, you’ll have to agree to put certain security measures in place to prevent a data breach from occurring in the first place. If your business is hacked, and your insurance company later finds that the breach occurred due to inadequate network security, it’s possible that your claim could get denied.
How data breach insurance works
Data breach insurance works like any other type of business insurance. Your policy has a premium, a deductible, and a coverage limit.
The premium is the amount of money you pay each month (or year) to keep your policy in force. The deductible is the amount of money you have to pay out-of-pocket towards a claim before the insurance company will reimburse you. Lastly, the coverage limit is the maximum amount of money that your insurance provider will give you after a covered loss.
If your business is targeted by a data breach or cyber attack, you’ll contact your insurance company and notify them of the incident. They’ll probably send you a bunch of claim paperwork to fill out and return with evidence of the breach, like a ransomware email, intrusion notifications, or abnormal network activity.
Your insurance company will investigate the claim, and if it’s approved, you’ll receive a check to cover the necessary expenses, minus your deductible. Just keep in mind that once you file a cyber liability insurance claim, it’s likely that your premium will go up.
Who needs cyber liability insurance?
If your business handles sensitive data, like customer names, dates of birth, email addresses, Social Security numbers, credit card numbers, or bank account information, you need cyber liability insurance. It’s that simple.
While it’s true that some professional liability insurance policies include data breach coverage, it’s usually not enough in the event of a major attack. That’s why I recommend that all businesses invest in standalone cyber liability insurance.
Now, I know what you’re probably thinking. Maybe something along the lines of, “my company’s online systems are 100% secure—we would never get breached.” Or, you might be thinking something like, “only big businesses get hacked. Why would any hacker want the information my business stores?”
Here’s the honest truth. Businesses of all sizes, and in every industry, can and do get targeted by hackers. It’s true that large businesses suffer attacks more often, but a report from Hiscox found that 47% of businesses with less than 50 employees reported at least one data breach incident in 2019. That figure is up from 37% the year prior.
If you’re still contemplating cyber liability insurance, it’s a good idea to ask yourself what you would do if your business was attacked right now. Do you have an IT security team on speed dial? Do you have the funds to cover a six-figure lawsuit? Would the lost income have any effect on your business’ operations or your ability to pay employees?
Even if you never suffer a breach (and hopefully you don’t), at least you have peace of mind knowing that you’re covered if the unthinkable happens.
How much is data breach insurance?
Service
Average cost
Ongoing services Having consistent professional help can keep your yard clean and healthy. A well-maintained yard is good for wildlife and also motivates you to get outside more often and enjoy it, so it is a big deal! Lawn maintenance Ongoing lawn maintenance involves mowing your grass and weed whacking the edges of any hardscaping, like the sidewalk, driveway, and flower beds. The lawn maintenance company provides their own equipment, as well as any products that may be needed. In the fall, you can also add leaf removal services and have the collected leaves taken off-site by your maintenance crew. Costs vary depending on the size of your lawn and how intricate any weed whacking may be. According to HomeAdvisor, average prices range between $49 and $218. Depending on your weather, you may opt for weekly or bi-weekly service. The rainier it is in your area, the more frequent mowing may be needed. Pros of hiring a landscaper: Seasonal expense in many areas. During cooler-weather months you may not need to pay for lawn maintenance. Get on a schedule. Avoid tall grass by scheduling recurring services from your maintenance crew. Avoid paying for and maintaining lawn equipment. Upfront and ongoing maintenance costs for lawn mowers and weed whackers can quickly add up, especially compared to the relatively low cost of professional lawn maintenance. Cons of hiring a landscaper: Extra cost added to your monthly budget. Go the DIY path if your budget is already tight or you’re focused on important financial goals like debt payoff. A fixed schedule may not meet your lawn’s needs. Low rain could mean you’re paying for service even without tall grass. On the flip side, your lawn may be ready for a trim after heavy rain, days before your next mowing is scheduled. Bedding plants and installation Spending time in a yard filled with beautiful plants can give you countless hours of joy throughout the year. Plus, you’ll create a haven for all types of important insects, including pollinators. A professional landscaper can pick out plants that thrive in your area and in specific spots in your yard. You can also get advice on plants that work best for your preferred level of care, whether you want to invest the time to water and weed, pay to outsource those tasks, or focus entirely on low-maintenance plants in your landscape. The cost of getting a landscaper to choose and install plants ranges from $1,366 and $5,641. If your landscaped beds have become extremely overgrown, this expense may be worth the cost, but if you simply need to pop in some annuals to fill up space, this might be a better DIY project. Pros of hiring a landscaper: Create year-round interest. A landscaper’s expertise ensures your flower beds aren’t dull three out of the four seasons of the year. Choose the right plants based on water and sunlight needs. Avoid killing plants and wasting money by picking the right options for your yard’s conditions. Pick colors and textures that complement each other. A landscaper creates an overall theme, whereas a DIY approach may create competing colors, heights, and textures. Cons of hiring a landscaper: Can be costly. The expertise of a landscaper definitely comes at a price. You have less control over designs and colors. A DIY approach may be better if you have a very specific aesthetic you want to achieve in your yard. Disease and insect control Insects are a natural part of the garden’s ecosystem, but some bugs and diseases can actually harm your plants. There are many ways to mitigate these issues on your own, like promoting healthy soil and encouraging beneficial bugs that prey on the damaging types. For instance, ladybugs eat aphids, an insect that can cause major damage to vegetables, fruit, roses, and other flowers. But if you need help, a professional landscaper can manage these issues as well. Just be sure to ask about the products they use and the ingredients, especially if you grow edibles in your garden. Non-organic ingredients can be harmful to you, your plants, and beneficial insects. A standard pest treatment typically costs under $100, according to Thumbtack. Pros of hiring a landscaper: Fast and easy service. Outsource the work rather than trying to figure out what products and treatment you need. The expertise of specific disease and pest issues. Make sure you’re treating the right problem, so you don’t waste money on DIY “solutions” that just don’t work. Cons of hiring a landscaper: May use harmful ingredients. Ask what products the landscaper uses and check to see if the ingredients align with your needs, especially if you grow an organic garden or have outdoor pets. Less control over products and processes used. You need to trust the professional you hire. Tree services It’s important to regularly care for any trees near your house since they can cause damage to your home as they grow larger. The biggest issues are trees extending over your roofline and dead trees eventually falling. Regular tree maintenance includes pruning your trees to keep them disease-free and trimming away dead branches. Your trees will stay healthy, and you don’t have to worry about branches falling and hurting someone or something on your property. You can certainly buy the tools needed to care for your trees and take a DIY route, but you also need to learn about how pruning affects each tree and what time of year is best for curbing tree growth. Hiring a landscaper to do the job could very well keep your trees in better shape, not to mention help you avoid the risk of injuring yourself. Just be sure your tree service landscaper is licensed and insured in case they sustain an injury while on the job. The cost of having tree work done is dependent on how many trees are on your property, their size, and whether or not they need to be felled. Pros of hiring a landscaper: Trees safely pruned: Landscapers have the knowledge and experience to keep people safe. Avoid damage to surrounding property: Falling trees can cause damage to nearby houses, cars, or fences. A professional knows how to cut strategically so the tree lands where it should. Pick the best season for pruning. Pruning in some seasons spurs new growth, while other seasons are best for managing size. Utilize the right equipment for hard-to-reach places. Tall trees could require heavy equipment, like a cherry picker or scissor lift. Cons of hiring a landscaper: Can be costly for tall trees. Tree trimming is important, but will take a pretty big bite out of your budget. Unlicensed landscapers could be an insurance liability. An uninsured contractor who gets injured on your property could require you to file a claim with your homeowners insurance policy. One-time landscaping services In addition to ongoing lawn care, weigh the pros and cons of hiring a landscaper for one-time landscaping projects. Hardscape design and installation No matter what size your yard may be, a professional landscaper can help you design hardscaping to maximize its usability. This could be with decking, a stone patio, pergola, or other hardscape features. The design and installation are typically two different services. A professional landscape design for your outdoor space could range from $1,954 to $6,971. For the actual labor and materials, your costs vary greatly depending on the size, scope, and materials. These projects are typically better left to the professionals instead of a weekend warrior project, unless you have above-average DIY skills. For a homeowner with limited experience, you run the risk of unlevel patio stones or structurally unsound hardscaping if you attempt large-scale projects on your own. Plus, projects like decking typically require city or county permits and approvals. Pros of hiring a landscaper: Quality craftsmanship. Avoid the DIY “look” by using a detail-oriented landscaper. Faster results. Get your project completed all at once, rather than fitting it into your own busy schedule here and there. Cons of hiring a landscaper: Expensive costs. Expect to spend several thousand dollars for hardscaping projects. Potential need to manage multiple professionals. You may have to manage the landscape designer and installer separately. Landscape lighting Incorporating lighting into your landscape can add a magical nighttime ambiance to your yard. There are different levels of service depending on the property features you want to highlight in the evening. You could add uplighting towards the home to draw attention to unique architectural features or illuminate walking paths to see where you’re going in the dark. String lights for garden parties are also a popular upgrade when it comes to landscape lighting. Some of these projects are fairly simple to DIY and if you opt for solar-powered lights, you can especially save money since you won’t have to plan on an electrician having to wire anything. For bigger projects that do require re-wiring, you may want to hire a professional so you don’t hurt yourself. Electricity is not something that you should play around with. Costs vary on the type of lighting and how far your cables need to go from existing electric lines. Pros of hiring a landscaper: Safer than DIY. This is especially true if new electric cables are involved. You don’t want to set yourself up for a fire hazard. Cons of hiring a landscaper: Solar projects may be easier. In some cases, DIY projects may be simple if no new electrical cables are needed. Lawn and garden bed irrigation If your summers are marked by dry conditions or inconsistent rain, you might consider installing a sprinkler system for your grass and irrigation lines for your garden beds. Irrigation can keep your plants healthy all year long. If you’ve already invested in lawn seed and garden plants, this could be an important project. Plus, while the average drip irrigation system costs upwards of $2,000 for an entire acre, there are plenty of online DIY tutorials that can help you spend even less. In fact, if you’re willing to do some digging and connect some PVC pipes and soaker hoses, you could knock out this project for around $100 (depending on your garden size). A new sprinkler system might be pricy, but you can purchase a DIY kit if you feel confident in marking zones and digging trenches throughout your entire yard. Based on the mechanics involved, this would definitely be a project for more seasoned DIYers. Pros of hiring a landscaper: A quick process with limited mistakes. A landscaper can quickly get irrigation or sprinklers in place without digging into buried power lines or pipes. Minimal disruption to grass and other plants. Landscapers have tools to limit the disruption to your lawn, especially compared to you digging trenches by hand with a spade. Cons of hiring a landscaper: Small irrigation projects may be simple and inexpensive. You could certainly DIY raised bed irrigation or other areas that aren’t intrusive. Saving with a DIY approach When deciding which projects to complete on your own, start by evaluating your safety and skills. Selecting and planting plants takes a little research, that way you can make sure that you are planting them in the right place. That said, it can be a fun experience and much less expensive to tackle by yourself. Consult the staff at your local garden center to get ideas of what plants perform well in your area. If you make mistakes, you can always plant something new. For projects that have an element of danger involved, like trimming trees or building a deck, consider shelling out the money for the professional. You don’t want to risk building a faulty structure or mistakenly estimating where a tree could fall.
| Project | DIY cost | Professional cost |
|---|---|---|
| Planting | Cost of plants | $1,366 to $5,641 |
| Lawn maintenance | Average cost of lawn mower: $363 for push mower; $2,450 for rider mower Plus gas and maintenance costs |
$49 to $218 per visit |
| Deck construction | $8 to $10 per square foot | ~$25 per square foot |
Summary Some landscaping projects are easy to do by yourself over the course of a few hours, but others take a lot of time, effort, and skill. For some homeowners, it isn’t worth it to take the DIY route. At a minimum, hire out landscaping projects that may seem dangerous without the right tools or talent. From there, you can gauge how each project cost compares to your budget and timeline to find out if hiring a landscaper is, in fact, worth it for you. Read more: How Much Should You Be Saving For Home Maintenance? My Biggest Financial Mistake As A New Homeowner: Not Building Relationships With Local Service Providers – How much is data breach insurance?” width=”648″ height=”364″ loading=”lazy”>
If you’re like me, one of the biggest deterrents to purchasing any type of insurance is the cost. I know how valuable insurance can be, especially for a business, but paying for something you might not ever use can feel unnecessary. But trust me when I say the cost of cyber liability insurance is worth it.
Like all types of insurance, the cost of cyber liability insurance is different for every business. Your premium is based on factors such as:
- The number of employees you have.
- The industry your business operates in.
- The number of insurance claims your business has filed in the past.
- The amount and types of data that your business stores.
- The security measures you have in place to prevent a breach.
- The insurance company that underwrites your policy.
The only way to know for sure how much you’ll pay for cyber liability insurance is to apply for coverage and get a personalized quote. However, I will say that data breach insurance tends to be more expensive than other types of business insurance because the claim payouts are usually pretty pricey.
Fortunately, there are a few things you can do to keep your cyber liability insurance cost low. One of the best things you can do is invest in robust security software and equipment that mitigate risk and safeguard sensitive information.
Also, make sure that your employees have cybersecurity training. They should know how to spot a phishing email, how to detect system vulnerabilities, and how to stay safe on the internet. Insurance companies want to see that your business is privy to these risks, and can spot them quickly.
The last suggestion I have for saving money on cyber liability insurance is to bundle your business insurance policies. Many insurance companies will reward you with a lower premium if you purchase multiple insurance policies, like business liability insurance and data breach insurance.
Where to get cyber liability insurance
Cyber liability insurance may not be as common as professional liability insurance or commercial property insurance, but it’s available from most insurance providers that sell business policies.
Most insurance companies offer coverage anywhere from $100,000 to $5 million and above. The amount of coverage you need is going to be different for every business, and you can ask yourself some basic questions to get started:
- How secure is your system?
- How many customers would you have to notify if their information got stolen?
- Could you afford to pay for an IT team to patch the system flaw?
- What’s the chance that a potential breach would put your company in the local news?
- Could a breach take your company offline for multiple days or longer?
The higher your coverage limit is, the higher your premium will be. But don’t skimp on coverage just because you want to avoid paying an expensive rate. If your data breach insurance policy doesn’t cover the full cost of a claim, you’ll have to pay the rest out-of-pocket. And remember—the average cost of a cyber attack on a small business is more than $2.5 million.
Summary
Cyber liability insurance isn’t legally required, and unlike general liability and professional liability insurance, you won’t need it to get an office lease or sign a contract with a client. However, I still highly recommend this type of insurance for every business owner who’s handling sensitive information.
Cyber attacks are no joke, and they can happen to any business at any time. Trust me when I say that even the most secure businesses are susceptible to motivated hackers. Fortunately, a cyber liability insurance policy can protect your business legally and financially in the event of a breach.
So, if I’ve convinced you to invest in a cyber liability insurance policy, start looking at providers and chat with an agent to figure out how much coverage you might need. Use my suggestions to keep your premium low, and review your coverage every year to make sure it’s adequate.
Most importantly, though, I urge you to take a look at your security systems and put measures in place to mitigate risk. There are lots of affordable security software on the market that can strengthen your network. As you scale, you might even think about hiring an IT-focused employee who can have eyes on your network at all times.