With practically all information online these days, new dangers arise for businesses and clients in the form of cyberattacks and theft. Any business that stores information electronically needs cyber liability insurance. This includes:
- Hospitals and medical practices
- Banks
- Insurance agencies
- Online retailers
- Technology companies
- Lawyers
This is not a comprehensive list, of course. Even if your business or specialty is not listed, you may still need cyber liability insurance. Even a single cyberattack can cause heavy damage to your business’ finances and reputation.
If you keep important information such as credit card data, addresses, names and phone numbers, social security numbers and more, you will need cyber liability insurance to protect against lost or damaged data.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance covers against loss, breach or damage of electronically stored data. If your company’s online portal is breached, for example, all of your client’s information can be compromised by the hacker.
With cyber liability insurance, you can receive compensation for:
- Damage to your software
- Reputation management
- Lawsuits and settlements
- Restoring and recovering information and compromised data
Reputation management is crucial after a cyberattack. One hack can make clients and potential clients wary of your services, uncertain whether or not their information will be safe with you. Cyber liability insurance can help with costs related to marketing and HR reputation management to help save your company’s image as you recover from an accident.
This insurance also covers lawsuits, as clients and other third parties could file a suit for negligence for not keeping their information safe.
Protect Your Business from Cyberattacks
The best way to deal with a cyberattack is to avoid them happening as much as possible. You can do so by having a multi-factor log in system for your business’ sites and upgrading your computers’ protective software. Make sure all employees with computers or laptops are trained on proper log in and cyber safety procedures, such as avoiding connecting to unprotected networks.
Be sure to speak with an insurance agent about finding a cyber liability insurance policy tailored for your business’ needs. It can help to receive multiple quotes amongst insurers so that you can get an understanding of how much you should be paying for the right policy. Not all policies are created equal and you will need one geared toward your industry and budget to ensure that your customers, employees and business are safe.
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