Cyber-attacks cost companies billions of dollars each year, and the rate at which they’re occurring has risen dramatically in recent years. Businesses have secured information in their databases including client data, credit card details and other sensitive information like health records and social security numbers. These are all valuable information for the hackers and can be easily misused if found at the wrong hands. Therefore, it is imperative for the companies to buy cyber security liability insurance.
What is Cyber Liability Insurance?
Cyber security liability insurance is a form of commercial general liability insurance that protects your business against losses caused by cyber-attacks, data breaches and other unauthorized access to your systems. This can include both direct expenses (such as hiring an IT security firm to investigate the incident) and indirect expenses (such as lost productivity).
Cyber insurance can reduce the risk associated with cyber-attacks by providing both cover for your organisation’s cyber liabilities and additional features that can improve your overall business productivity.
Who Needs Cyber Liability Insurance?
If you have a digital presence and store sensitive information online, you need cyber insurance services. This includes all types of businesses, from small businesses like restaurants that accept credit cards in person to large corporations with multiple locations and hundreds of employees. If you offer internet services such as e-commerce or web hosting, it’s even more important that you have this type of coverage so that you can protect yourself from legal action if something goes wrong with your website or services.
What does the Coverage Include?
The coverage includes a range of scenarios, including:
- Data breaches and stolen data
- Hacking attacks that lead to loss of data or property damage
- Malware attacks and ransomware incidents
- Identity theft insurance for customers who are affected by a data breach
- Theft from laptops, mobile devices, and other electronics
- Theft from office buildings and other physical locations
Important tips for Choosing the Right Cyber Insurance
Cyber-attacks are on the rise, so it’s not surprising that more businesses are now looking for affordable cyber liability insurance plans. However, many businesses still don’t have a clear understanding of what the best options are and how to find them.
There are several types of cyber liability policies available on the market today. Depending on your needs and risk tolerance, you can choose from different levels of coverage. Here are some tips for choosing the right policy for your business.
1) Know Your Needs
The first step in choosing the right cyber liability insurance plan is to understand your needs and requirements. The coverage provided by different types of policies will vary depending on several factors such as:
Your industry – A manufacturing company will have different needs than an e-commerce store or a software development firm.
Your budget – small businesses may need basic protection against losses due to cyber-attacks while large enterprises may require specialized plans with additional features like identity theft coverage and data breach recovery assistance services.
2) Know your Type of Coverage
- Consider whether you need general liability protection or specific coverage relating to cybersecurity breaches and other privacy violations. If your business handles sensitive information like credit card numbers or social security numbers, then consider purchasing a policy that covers those losses specifically rather than just general loss due to theft or vandalism.
- Make sure your policy covers all your data, including sensitive information like customer records and employee records.
- Ensure your policy covers both employee and third-party data breaches.
- Make sure the policy includes coverage for things like ransomware attacks, phishing scams, and other malicious activities that could affect your business.
Summing Up
The world of technology is a constantly growing and expanding entity. No matter what kind of business you run, cyber liability insurance is something that you need to prepare for. Not only does it help if your business is breached but it will also keep you protected in the case of any misinformation or accusations made regarding your products or your businesses practices.
Buying cyber liability insurance is not unlike buying any other type of insurance policy. You’ll have to compare the premiums and payments for each option side-by-side and select the best one. There are a lot of different cyber liability policies out there, so do your research and find the one that’s best for you.