With much of our world online these days, a lot of crimes have turned digital. No one wants to be a victim of a malicious cyberattack, but there’s a lot more at stake when it’s your business that is targeted.
Cybersecurity insurance protects businesses against computer-related crimes and losses. Policies typically cover targeted attacks whether through malware or phishing, as well as covering a misplaced laptop with confidential information.
A cyber insurance policy is created to cover network, data, and privacy exposures. If your business computer system is attacked, you may be liable for the cost to notify affected parties and provide credit monitoring, even if the data isn’t exploited. You can lose money if you’re a victim of a phishing attack or lose business due to ransomware demands.
What Does Cyber Insurance Cover?
- Breach costs cover costs associated with responding to a breach, such as credit protection services, notifying affected parties, and public relations costs.
- Cyber extortion covers response costs and financial payments associated with online ransom demands.
- Cybercrime covers financial losses associated with social engineering, reverse social engineering, and funds transfer fraud.
- Business interruption covers lost revenue when a business has its online-revenue disrupted from viruses, computer hacking, or technology failures.
- Data recovery covers costs to replace, restore, or repair damaged or destroyed data and software.
What Businesses Need Cyber Insurance?
It is recommended to have cyber insurance if your business:
- Accepts credit cards or other digital payment
- Keeps medical or financial data
- Uses computers or mobile devices
- Stores confidential customer information
Many small business owners may believe that the risk of a cyber attack on their business isn’t as high as it is for a larger corporation. While big-scale attacks do happen, target attacks on small businesses are more common. When attackers gain access to sensitive information, the fallout is quick and costly. Recovering from a data breach can cost the company thousands of dollars in fines and lost reputation.
Regardless of the size, industry, or number of customers, a small business possesses, investing in cyber liability insurance may be crucial if sensitive data is stored online. However, you should also recognize that insurance will not prevent a data breach from occurring. Call us today so we can help you Protect Your Good Life.