Cyber liability insurance provides the peace of mind that comes from knowing your business is prepared for the unexpected. No company can completely prevent data breaches from occurring or malicious employees from committing cybercrimes, but it is possible to prepare for the possibility by investing in a comprehensive cyber liability policy.
If your company stores sensitive customer information electronically, including credit card numbers or social security numbers, you should consider purchasing cyber liability coverage. In addition to protecting your business from financial loss associated with breaches in sensitive data, this type of policy can also cover the cost of hiring a public relations firm to help restore your reputation if your organization experiences an attack.
Why is cyber liability insurance important?’
Cyber liability insurance is a type of insurance that protects your business against an array of cybercrimes, including data breaches, hacker attacks, and other cyber-related incidents. It’s an important type of coverage to consider when you’re shopping for business insurance.
Cyber liability insurance is relatively new—cybercrimes weren’t much of a threat just a few decades ago. But with the rise of technology, the increase in internet use, and the move toward cloud computing, your business is at risk. When you can’t prevent cybercrime from happening, cyber liability insurance can help you recover from it.
What does cyber liability insurance cover?
Cyber liability insurance covers a wide range of risks that can result in significant financial losses for businesses. A cyber liability insurance policy can be purchased to provide protection for the following types of losses:
- Losses as a result of a breach of confidential information, such as customer names, addresses, credit card numbers, and health information.
- Losses that result from a computer virus or other malicious code.
- Business interruption losses that are caused by a computer system failure.
- Losses from an email that is sent with an attachment containing malicious code.
- Losses as a result of an employee accidentally sending sensitive personal information about customers to a competitor.
- Losses resulting from the theft of mobile phones or laptops containing confidential information.
What cyber liability insurance won’t cover.
Cyber liability insurance provides protection only for cyber-related events. Cyber liability insurance does not provide protection against falls, fires, flood damage, or any other non-cyber risk.
Does every business need cyber liability insurance?
It is not required for businesses to obtain cyber liability insurance; however, it’s a good idea. The costs associated with a single data breach can be devastating and even put certain companies out of business. When it comes to cyber liability insurance, you are better safe than sorry.
Businesses spend a lot of time and money building their online presence, attracting and converting visitors into customers, and delivering the right content to their clients. A single breach in security could have disastrous consequences, however, and cyber liability insurance can help businesses avoid those consequences. They protect your business from the risks associated with doing business online, including liabilities caused by malware infections and data breaches that result in financial losses for your customers. Protecting your reputation will keep you secure in the long term—it’s up to you to make sure that your business is secure as well.