Today, businesses are more connected than ever before. That is why cyber liability insurance is so important.
While these connnections open brand new doors and possibilities, they also open your business up to considerable online risk.
With data breach and cyber attack more common than ever, criminal can easily take advantage of cyber security weaknesses.
How can you protect your customers and commercial assets from the losses associated with a major data breach? The best way to secure your company is by investing in cyber liability insurance.
Here’s why your business needs the protection that cyber liability insurance provides.
Standard business insurance will offer coverage in the event that company property is damaged or lost. This coverage does not extend to digital property.
If your business’s files are compromised or stolen during a data breach, only cyber liability insurance will offer the coverage you need to restore this data.
Consider how many records and files your company has and it’s easy to see why you need insurance to cover all this data.
Data Breach Protection
As the victim of data beach, you incur a considerable number of losses. You are responsible for the costs associated with:
- Informing your clients
- Recovering lost data
- Restoring compromised identities
- Repairing affected computer systems
- And more
When you have cyber liability insurance, your policy will ensure these major expenses do not come direct from your company accounts.
In addition to the expenses listed above, your business might suffer other financial losses.
Revenue loss may happen as operations are halted to deal with the fallout from a major data breach. Additionally, your business will likely lose customers as a result of the breach.
Luckily, your cyber liability insurance will also cover the costs associated with crisis management and PR to salvage your business’s reputation.
These are some of the reasons why your business needs the protection that only cyber liability insurance can provide.