Cybercrime has been rapidly on the rise and is expected to cost an estimated $10.5 trillion this year. What can you do to protect your business? In addition to cyber safety measures such as security software and cyber security training, cyber liability insurance can help.
What is cyber liability insurance?
Cyber liability insurance is coverage that is designed to protect businesses from some of the most common security problems encountered with online and computer-related technology. Having this coverage is a key risk management strategy that can offer protection and peace of mind, with comprehensive data security and privacy coverages that address a variety of claims.
Why does my business need cyber liability insurance?
In a cyber-attack, criminals go after data. The cyber-criminal can infiltrate networks, hold data hostage, and can access sensitive information such as credit card numbers, passwords, addresses, and Social Security Numbers.
Small businesses are particularly vulnerable to cyber-attacks. Despite its size, a small business has information that hackers want, such as customer data and large sums of money, often without the same protections in place that larger businesses have.
Recovering from a cyber-attack is costly and difficult. An attack could jeopardize your business and your customers’ personal information, and it could lead to a number of expenses, such as:
- Fines from federal and state laws in place to protect consumers and employees.
- Free credit monitoring services to affected customers after the attack.
- Discounts or promotions offered as a goodwill gesture to regain customers’ loyalty and trust.
- Additional cyber-security protections, training, and resources to prevent future attacks.
Cyber liability insurance can help protect your business against these and other expenses in the aftermath of a cyber-attack.
What protection does cyber liability insurance provide?
Coverage may include:
- Access to legal counsel services. These professionals can provide tips on data security, legal advice, and help lessen the risk of civil litigation and other penalties if a loss does occur.
- A “breach coach,” an expert who can walk business owners through a cyber-incident. The coach works with experts to investigate how and when the breach happened, what was accessed, and who was affected.
- IT security and forensic experts to help
- Public relations/advertising support
- Call center and website support
- Credit monitoring and identify theft restoration services
How else can I protect my business from cyber-attacks?
It’s important to remember that, while cyber liability insurance plays a big role in protecting your business in the event of a cyber-attack, this coverage is just one piece of protecting your business. Businesses have a duty to have other cyber safety measures in place, such as security software and comprehensive overall plans to protect information.
Learn about the common ways in which hackers attack small businesses — and how you can best protect your business, your employees, your customers, and yourself: Cyber Safety Tips for Small Businesses
source: Merchants Insurance Group - Earning Your Business Every Day (merchantsgroup.com)