In today’s age, technology is a major part of our business operations: from conducting banking to running retail and e-commerce. As our reliance on technology grows, it’s becoming increasingly imperative that we’re aware of the importance of having cyber liability insurance as a failsafe in the event of a cyber attack. Barkly, a cybersecurity platform, notes that in 2017, 61% of small businesses experienced a cyber attack, up from 55% in 2016 -- with the number growing each day.
So what is cyber liability insurance, exactly, and is it right for you and your business? Read below about cyber liability and why it might be an important part of your insurance portfolio.
What is Cyber Liability Insurance?
Cyber liability insurance (sometimes seen as “cyber risk insurance” or simply “cyber insurance”), is a form of blanket coverage that protects a business in case of financial loss from a cyber attack, such as a data breach and/or computer damage from malicious software.
What Does Cyber Liability Insurance Cover?
Generally, a cyber liability insurance policy covers your business if you experience a data breach, which can result in major fines, legal fees and potential damage to your business and its reputation. A data breach can be defined as a breach or theft of an individual’s personal information, including Social Security or credit card numbers. Data breaches occur when a hacker or other criminal gain access to a company’s electronic network.
As with other policies, you can choose your amount of coverage but usually, it also covers:
Recovering data
Recovering and restoring identifies of affected customers
Repairing damaged computer systems
Notifying customers about the breach
In the event of a data breach, most states are required to notify customers. This can be costly to your organization. Electing to have cyber liability insurance will assist with the necessary financial resources to comply with local and state law.
How Cyber Liability Insurance Can Benefit Your Company
Any business, whether a mom-and-pop store or a large corporation, that incorporates technology in its daily operations should elect to receive cyber insurance. This is especially important for large corporations that oversee personal and private information of a large consumer base.
As technology becomes more advanced and is increasingly used for business operations, there are growing risks for data breaches and other cyber attacks. Each year, cyber attacks become more sophisticated and target more companies. Don’t fall prey to complicated cyber attacks that leave your company at risk of significant financial loss.
Elect to receive cyber liability insurance and make sure you’re not blindsided by a cyber attack. They can strike at any time.
Pepper, Johnstone & Company protects your family with a choice of multiple insurance agencies to choose from, for home, auto, and business. We've helped countless people save money on their insurance while making sure they're properly covered. Visit us today at our website, or give us a call at 256-232-7818 to get us working on a quote for you today. You can also request a cyber liability insurance quote here.