In a world ever transforming by technology, more companies are turning to online and electronically stored data when it comes to operation. Remaining with just a pen and paper won’t cut it if you are trying to make waves in your industry, or even if you’re running a brick and mortar store. No matter what industry you operate in, you will need some from of online presence.
Unfortunately, this need comes with a lot of risk.
Operating online or having any electronically stored data can leave your business open to cyber attacks, data breaches and information loss. This is where cyber liability insurance steps in.
Basic liability coverages such as general liability and professional liability will not cover data breaches. While general liability can cover some online issues such as accusations of libel, it will not cover your business if your information is leaked.
Cyber liability insurance can be added to most business insurance policies, including business owners policies (BOPs) and commercial package policies (CPPs).
In 2005 alone, 7,818 big cybercrime incidents impacted businesses. Global cyber-crime damage costs, experts agree, will be about $6 trillion per year by 2021. Cyber-crime isn’t exclusive, either. It affects startups, solo entrepreneurs and big businesses alike.
While antivirus programs, a sturdy SaaS platform and secure employee policies can reduce the likelihood of damaging cyber incidents, they don’t offer comprehensive protection after a loss occurred. Fortunately, something does: cyber liability insurance.
For example, imagine a skilled hacker accesses your customers names, payment information and contact information. They’ve even procured your employees’ social security numbers. If your website is disabled, so you can’t take in-store orders—let alone e-commerce orders, then work has to stop. Not to mention the uproar your customers may face and the hit to your business’ image. While losing current customers, you may also lose potential customers as a result of such a breach.
This is why modern companies buy cyber liability coverage in their business insurance plans. This type of insurance protects you, your employees and even your customers, financially, if a digital disaster occurs.
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Digital damages are surprisingly common. At some point, you’ll be at risk. If you have a computer, it’s a certainty that risks exist, no matter how small.
A good cyber liability policy covers expenses accrued due to business interruption. It also pays for breach notification—as well as recovery tools and services. A solid cyber liability policy can even protect your business from regulatory penalties and fines incurred from data breaches.
Cyber liability coverage isn’t expensive—having premiums as low as $2,000 per year. You can also get cyber liability coverage up to $30 million, and deductibles as low as $10,000, if you square away your business’s needs effectively.
If you want to secure your company, you need to protect it from all angles. Even if your business has an entire IT department devoted to predicting, analyzing and preventing cyber risks, you still need to cover yourself with a comprehensive business insurance plan. Talk to your insurance provider today, and discuss the best cyber liability plan for your business.
How Much is Cyber Liability Insurance?
The cost of cyber liability insurance varies depending on various factors, including your business’:
The reason insurers want to know about your claims history is because they want to know how likely you are to face another attack. If your business has been hit by a cyber attack in the past, this raises your likelihood—at least in the insurer’s eyes—of suffering another attack. Insurance providers may also ask about the protection you have in place to prevent breaches, which is why it is crucial to have the best firewalls and online protections you can have.
Preventing Cyber Attacks
Although cyber attacks are common and can’t always be predicted, there are steps you and your company can take to avoid the worst of them. Firstly, make sure to have a defense system that has a proven track record and high ratings.
Secondly, make sure only trusted key employees have access to certain sensitive information. Having less people involved can lower your company’s risk. Also make sure all employees are trained in how to prevent, identify and report possible cyber security issues. For example, employees should not connect to work on an unsecure network or leave their computers unattended, especially when sensitive information is open. Connecting to a bad line can give hackers an easy way in and cause damage in mere minutes.
When in doubt, speak with an insurance agent about adding cyber liability insurance to your policy. No matter where you work or what industry your business, cyber liability insurance is crucial in the modern age to protect your operations.