The Truth About Response Times: A Fast Response Isn’t The Same As A Fast Fix
Cyberattacks are on the rise for small businesses across North and South Carolina, yet many owners mistakenly believe they have adequate protection through a cyber insurance rider added to their general liability policy. The truth is, most riders offer limited coverage that falls far short of the costs associated with a breach—costs that average $345,000 for small to mid-sized businesses (Network Assured, 2024).
Riders vs. True Cyber Liability Insurance
A rider may provide a small amount of coverage for certain types of cyber incidents, but limits can be shockingly low—often $25,000 to $50,000. This is why North Carolina and South Carolina business owners should know the difference between a rider and a standalone cyber liability insurance policy.
Standalone cyber insurance policies are designed specifically for digital risk and typically cover:
- Breach investigation and forensic services
- Customer and regulatory notifications
- Legal defense and settlements
- Data recovery and restoration
- Business interruption losses
With ransomware claims averaging $485,000 (Network Assured, 2024), a dedicated policy offers far better protection than a limited rider.
Why Many Businesses Are Caught Off Guard
Many small business owners in the Carolinas only discover the limits of their cyber coverage after an incident occurs. In fact, 72% of small businesses purchase cyber insurance only after experiencing or hearing of an attack (The Small Business Blog, 2025).
Even more concerning, 64% of small business owners don’t fully understand what their cyber policy covers (AdvisorSmith, 2025). This lack of clarity leads to false confidence and dangerous coverage gaps—especially when relying solely on a general liability rider.
Security Requirements You Might Not Know About
Purchasing a robust cyber liability insurance policy is only part of the equation. Many insurers require that you meet certain security requirements before approving your coverage or paying a claim. These requirements typically include both technical safeguards and staff-focused processes designed to reduce risk. Examples include:
- Multi-factor authentication (MFA) on critical systems
- Regular cybersecurity risk assessments
- Continuous network monitoring and activity logging
- Secure data backup and recovery processes
- Routine phishing simulation campaigns to test and train employees
- Enforcing strong password hygiene and credential management policies
- Ongoing cybersecurity awareness training for all staff
Meeting these requirements (and possibly more) not only improves your chances of qualifying for coverage but also reduces the likelihood of an incident—protecting both your business and your customers.
An IT Companies Role in Cyber Readiness
IT companies are not insurance agents, but many work with small businesses across North and South Carolina to meet the security requirements that cyber insurers demand. By implementing the right cybersecurity solutions, they can help reduce your risk and increase your ability to qualify for comprehensive coverage.
Cyber Security Services: ranging from multi-factor authentication to real-time monitoring—align with what insurers look for when issuing cyber liability insurance policies. The stronger your security posture, the better your chances of securing coverage and minimizing the impact of cyber threats.
Next Steps for Carolina Business Owners
- Review your current policy to see if your cyber coverage is a standalone policy or just a rider.
- Ask your insurance provider specific questions about coverage limits, exclusions, and definitions of covered incidents.
- Strengthen your cybersecurity measures now, before an incident occurs, to ensure you’re both protected and insurable.
The takeaway: Cyber liability insurance can be the difference between recovery and closure after a cyberattack—but only if it’s the right type of policy paired with strong security practices. For small businesses in the Carolinas, that means moving beyond the checkbox and making sure your coverage truly protects you.
