Cyber Liability
Whatever it is, the way you tell your story online can make all the difference.
As businesses we become more internet-dominated, there has been an increase in sensitive information stored on computers. It is more vital than ever for businesses to invest in cyber liability insurance to combat the potentially devastating effects of a cyber-attack.
Many business owners are unaware of the high-risk data breaches at their establishment and do not take the preventative measures necessary to protect their data as they feel that the attack is unlikely to happen to them.
Regardless of your company’s size or industry, you must take action to secure their customers’ valuable data against the possibility of a cyber-attack.
By investing in cyber liability insurance it will protect your assets and proved valuable resources to support your company from other grim consequences if such an event occurs.
The High Costs Of Data Breach Recovery
When criminals get access to company databases, they become privy to important information, including customers’ Social Security numbers, credit card numbers, addresses and other identifying data.
Access is gained to sensitive business data, allowing them to access accounts, drain money and destroy the affected individuals’ credit. Recovering from a business data breach can cost companies thousands of dollars in fines and lost reputation.
Such expenses often include:
Business interruptions. When hacked, businesses often close their doors while they investigate the source and impact of data breaches; they also suffer from decreased sales due to negative publicity and diminished customer confidence. The days or weeks a firm spends out of commission represent lost profits and opportunities.
Security overhauls. Updating or implementing a new security system costs a great deal in software, infrastructure and personnel. It also requires training staff in new policies and procedures.
Concessions to customers. As a sign of goodwill, many businesses affected by data breaches offer free credit monitoring services to customers for a specified period after they occur. These and other perks – such as discounts or service promotions – help regain customer trust and loyalty. However, they do so at a cost.
Bankruptcies and business closures. In the past, it has resulted in businesses shutting down after a few months of a data breach. From stolen resources to the expense of responding to a cyber-attack, these incidents have the potential to deplete the savings of the most promising small business.
Cyber Insurance & How It Can Support Your Business
Cyber liability insurance covers policyholders in the event of a specified loss – in this case, a cyber-attack. As business owners work to recover information and resources from a data breach, the insurance covers expenses such as; credit monitoring for affected customers, lost revenue, crisis and reputation management, customer notification and investigation of the attack.
As the popularity of cyber liability insurance increases, policies are available at prices any size of business can afford, from small start-ups to multinational corporations. Representing a small percentage of a company’s annual insurance costs, this product comes at a low premium in comparison to the potential repercussions of a data breach.
Including Cyber Insurance A
INCLUDING CYBER INSURANCE AS PART OF AN OVERALL SECURITY STRATEGY
Regardless of the size, age, industry or number of customers your company possesses, investing in cyber liability insurance may be crucial if you store sensitive data online. However, you should also recognize that insurance will not prevent a data breach from occurring.
To protect yourself most effectively from cyber-attacks and their devastating consequences, we do advise you to incorporate cyber insurance into an overall security strategy that includes substantial security safeguards and a decisive incident response plan.