Are you prepared for the fallout of a cyber-attack? Many businesses don’t think they need to invest in cyber insurance, but doing so can save you plenty of money. Discover what you should know about insurance coverage in this guide.
Every Business Leader Is Responsible for Their Own Cyber Security
Having insurance coverage for your business doesn’t mean you can completely ignore basic cyber security measures. You are 100% responsible for taking proactive steps to prevent common forms of cyber-attacks, including:
- Ransomware attacks
- Phishing campaigns
It’s important to do your part to mitigate any malicious activity, even if you have insurance coverage. Underwriters, through your provider, must confirm you have measures in place to prevent dangerous attacks and receive reimbursement.
Benefits of Investing in Cyber Insurance Coverages
Why should you consider investing in this type of business insurance? Discover some key benefits of having an insurance policy should your business become the unfortunate target of a cyber-attack.
It Gives Your Business a Lifeline
Say you operate a small to medium-sized business. You’re just beginning to pick up steam and grow your profits when a hacker infiltrates your computer system and shuts down your access. Recovering from such a cyber-attack can take much longer than anticipated and may even force your business to close.
Having insurance is a safety net that can help keep your business open. Small business owners don’t always have the means to cover the costs associated with data breaches. An insurance policy can take care of these expenses, including:
- Incident response
- Forensic investigations
- Recovery costs for business loss
It Provides Customers With Peace of Mind
When hackers gain unauthorized access to a business’s data, they often get the personal information of the company’s customers. This violates the customer’s privacy and causes them to lose loyalty to the brand. With insurance coverage, a business can give peace of mind to their customers.
Plans typically cover the costs of crisis communicators, litigation, and even customer credits or refunds.
All Industries Benefit
No company is completely safe from the threat of a cyber-attack. However, insurance is available and can help businesses across many sectors, including:
- Government agencies
- Financial institutions
- Schools and universities
- Large corporations
Rather than suffering from the aftermath of an attack, insurance helps organizations and businesses bounce back quickly.
Finding a Cyber Insurance Policy
Getting cyber insurance for your business is a great idea because of the benefits it provides you and your customers. However, with increasing cyber-attacks, finding a policy that suits your needs can be challenging. The recovery costs providers must take care of are usually disproportionate to the premiums they charge businesses, putting them in a compromising position.
Don’t let this deter you from investing in a policy should the unthinkable happen.