In the first six months of 2019, there were over 3,800 data breaches. That staggering number is a 54% increase from last year. It’s clear that cyber attacks are on the rise and are now a massive danger to businesses. That’s why cyber risk coverage is so important.
Small businesses are at the highest risk. They lack large technology departments to help monitor online security.
Do you have cyber liability insurance? You might need it! Learn why you should have a policy with cyber risk coverage.
5 Reasons You Need an Insurance Policy With Cyber Risk Coverage
There are several key reasons why cyber-security insurance is beneficial to your business. Chief among them is that it could save your business from going bankrupt.
When looking at which insurance agency to choose, analyze what aspects of a security breach they cover. Compare prices and then decide which coverage best suits you.
Let’s take a closer look at why your business should invest in cyber-security insurance.
Customer and employee information is sensitive. A breach that exposes their data can expose you to liability. This type of coverage protects your company from liability.
2) Network Security
This type of cyber insurance will cover your business should it experience a network security failure.
A network security failure includes things like:
- data breach
- cyber extortion
- malware infection
- business email compromise
This aspect of insurance will help cover first-party costs that you incur due to the cyber incident. These types of costs could be things like legal expenses or credit monitoring.
3) Media Liability
If a data breach leads to intellectual property infringement, then this coverage will protect you. This liability includes things like online advertising and printed advertising.
4) Business Interruption
If your business is dependent on technology to operate, then it might experience operational issues if a cyber threat occurs. Through this coverage, you can recover lost profits.
In the event a cyber-attack prevents your business from completing its contractual obligations, E&O coverage would protect you. This type of insurance will take care of allegations of negligence and legal defense costs.
If you feel like you’re one of those people who’d buy a book called Insurance for Dummies, don’t. Insurance is one of those complicated areas where it helps to have an expert walk you through the different types of liability coverage.
To summarize, cyber-security insurance is a type of insurance that helps protect your business from damage caused by a cyber threat. A cyber attack can cause different types of problems to a business, from damaging equipment to stealing customer’s information. Different liability coverages target specific problems.
Make sure you also compare prices for insurance plans. Cyber liability insurance costs will vary. On average, cyber insurance cost ranges between $750 to $8,000.
Invest in the Safety of Your Business
Cyber threats abound in the new digital age. Each and every business is at risk from a data breach. If you want to protect your business from astronomical damage, invest in cyber-security coverage.
We hope this guide provided some useful information on why it’s important to get coverage for cyber-security. Before you go, please take a moment to browse our site for other informative articles.
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.