Cyber Insurance for Beauty Care Businesses
We offer important cyber incident policies for beauty care businesses.
Protect your beauty care business with cyber insurance made for your industry
In today’s digital age, beauty care businesses are more connected than ever—managing appointments online, storing client data, and running e-commerce shops. But with this convenience comes risk. Cybercriminals increasingly target small and medium-sized enterprises, and salons, spas, and cosmetic retailers are no exception. Our specialized cyber insurance is designed to safeguard your reputation, cover data breach costs, and keep your operations running smoothly—so you can focus on helping your clients look and feel their best.
What does cyber insurance cover?
The following are examples of the types of losses that cyber incident insurance can typically cover*:
| Ransomware & Cyber Extortion | Negotiating with the extortionists and payment of ransom to decrypt or return access to your computer system, data or website. |
| Privacy Breach Response Expenses | Costs for computer professionals to determine the cause and extent of the breach, breach response advice, costs to notify affected people, providing credit or identity monitoring to affected people. |
| Business Interruption | Loss of profits caused by data breaches, ransomware, and malware. |
| Posting Content Online | Liability coverage for multimedia content posted online, such as videos, streaming, webcasts, social media posts, vlogs and blogs to protect against accusations of negligence causing libel, slander, defamation, copyright infringement, misappropriation of ideas and plagiarism. |
| Credit Card Processing Fines | Covers fines or fees that credit card companies may assess against you to cover their costs of fraud recovery, card reissuance, notification to card holders due to a breach of your computer security, such as a hacker accessing stored credit card information. |
| Funds Transfer Fraud | Reimbursing you after someone pretending to be you requests funds to be transferred from you, such as by e-transfer, and into the fraudsters account. |
| Crisis Management | Costs to mitigate the damages due to an actual or imminent publication of a data breach, such as PR or crisis management consultants. |
| Reputational Harm | Loss of profit due to the adverse publication about a security failure, data breach, or cyber extortion. |
| Data Restoration | Costs to replace, restore or recreate data or software after a security breach. |
| Lawsuits | Related to privacy breaches and other computer security failures. |
How do I know if I need cyber insurance?
If you answer yes to any of these questions, you should consider cyber insurance for your business:
- Will you see a drop in revenue if your website is hijacked, rendered inoperable, or has traffic siphoned off by a website designed to fraudulently impersonate your website?
- Do customers book appointments, buy products, or make payments through your website?
- Do you publish content for your business online or on social media, such as videos, streaming content, vlogs, blogs, or podcasts?
- Are computers critical for operating your business (including keeping accounting or customer records)?
- Do you conduct any business activities by email, such as for communicating with customers, suppliers, employees, or making or receiving e-transfers?
- Do you have business information stored online in the cloud?
- Do you process credit or debit card payments?
- Do you pay bills by e-transfer?
- Do you have paper or electronic records with personal information for customers or employees, such as credit card numbers, banking information, social insurance numbers, home security codes, or personnel records?
- Do you want ready access to help if your business is a victim of a cyber crime, such as a ransomware attack, a compromise of your business email, denial of service attacks on your website, or a privacy breach?
How much coverage should I have for cyber Insurance?
A few quick facts from 2021 cyber claims to help guide you:
| Average cyber incident insurance payout: | $160,000 |
| Average cost to deal with a data breach | $275 per lost or stolen record |
| Average ransomware demand Average ransomware claim paid | $1,200,000 $184,000 (yes, the insurance company is good at negotiating the ransom down!) |
| Average funds transfer fraud claim paid | $247,000 |
Since many cyber incident claims involve multiple types of losses at the same time, such as privacy breach, ransom, data restoration, reputational harm, business interruption and the potential for lawsuits, we recommend buying a limit high enough to pay several types of losses.
$250,000 Coverage Minimum
A $250,000 cyber limit is the bare minimum amount we recommend you consider if you have up to 900 individual records with personal information, such as client records or credit card information, to have enough coverage to cover the average privacy breach claim.
A $250,000 limit is also the minimum amount needed to cover the average ransom payment and fund transfer fraud claim, provided you don’t have a cyber incident involving both of these claims.
A higher limit may be needed to adequately protect you if:
- You experience a claim involving privacy breach expenses, ransom, or funds transfer fraud that is higher than the average claim.
- You experience a claim that involves multiple types of losses at the same time, such as a privacy breach with ransom, business interruption, reputational harm, and data restoration costs.
- You become subject to lawsuits because of a privacy breach, computer security failure, or allegations that your online content includes misappropriation of ideas, plagiarism, libel, slander, defamation, or copyright infringement. The bigger your online audience is, the greater this risk is for you.
- The loss of business data, loss of use of your website or other online sales/services, and the reputational harm the release of stolen data may have could exceed $250,000.
- You’re concerned about having multiple claims during the policy term. Repeat security breaches are not uncommon once hackers have identified a vulnerable target.
We work with top insurance companies to safeguard your business with customized cyber insurance for beauty care businesses.
How much does cyber insurance cost?
For beauty care businesses that we typically insure, the average prices we see for cyber incident coverage are as follows:
| Limit | Average Approximate Price* |
|---|---|
| $250,000 | $800 to $1,000/year |
| $500,000 | $1,100 to $1,300/year |
| $1,000,000 | $1,500 to $1,700/year |
| $2,000,000 | $2,000 to $2,200/year |
Why does it cost so much?
Because the claims are becoming more and more common and the costs for a business to recover after a cyber incident are growing significantly each year. This also is a good indicator your business will likely need this coverage to survive a cyber incident.
Is there a less expensive option?
Yes, you can opt to only have privacy breach coverage added to an existing PROtique Masterplan policy for around $100/year. This provides more limited privacy breach coverage, with lower limits. You will also need to comply with strict computer security protocols to be eligible for the coverage. It will not pay for any lawsuit settlement or judgement against you, and does not cover ransomware, cyber extortion, data recovery, reputational harm, funds transfer fraud, or liability for online multimedia content like a more robust cyber incident policy can do.
Why trust Acera Insurance and PROtique for your cyber insurance needs?
Since 1998, we’ve protected beauty care professionals with custom small business insurance. We understand the importance of providing peace of mind, so you can focus on what you do best: serving your clients. Let us customize a PROtique policy that’s perfect for your business, ensuring you’re covered for the risks that matter most.
Ready to get your free cyber insurance quote?
Enter your information into our digital tool to get a no-obligation quote in minutes – you can even pay for your policy online!