What Is Cyber Insurance Policy?
A cyber insurance policy, also called cyber liability insurance, is a coverage that protects you against internet-associated risks. Doing business online is not without risks as brands can experience breaches in their customer database, causing leakage of sensitive customers’ information. To minimize the losses associated with these risks, you should take out cyber liability coverage. This policy can cover a myriad of cybersecurity-related claims, such as data breaches, network failures, and media or content liability. When faced with these claims, lack of coverage will lead to out-of-pocket costs that can affect business growth.
Why Businesses Need Cyber Insurance
All types of businesses are at risk of internet-related damages regardless of their size. Most brands require their clients to supply sensitive information like credit card details, contact addresses, and social security numbers. A security breach can put hundreds, if not thousands, of customers at risk depending on the nature of the information breached. You do not need to have hundreds of employees before you start handling sensitive customer info, so overlooking this policy can cost you significantly more than the cost of getting covered.
If a client suffers loss as a result of a breach in your website’s database, they can sue you for damages that can cost thousands of dollars. A cyber insurance policy helps to minimize out-of-pocket costs should such a thing occur.
Cyberattacks can cause a huge dent in your brand’s image, which can discourage customers from patronizing your business. Adequate coverage for your business will save you from financial losses like a data breach, extortion, and loss of income. This policy protects your business and also covers the third party whose information was stolen during the cyberattack.
Extent of Coverage
Most insurance companies offer this policy, so you can compare quotes from multiple providers before deciding on the coverage that fits your business’s specific needs. The structure and benefit of the policy may vary from one provider to another, but it generally covers costs resulting from the physical destruction or theft of information technology (IT) assets.
Cyber insurance policy covers expenses incurred
To meet extortion demands from a ransomware attack
To alert customers that a breach has occurred
To cover legal fees after getting sued for damages
To hire professionals and IT experts to rectify the breach
To remedy the situation by recovering altered or stolen data
To repair or replace damaged or compromised work computers
Who Needs Cyber Insurance?
You should consider taking out this policy if:
Your clients make online payments for goods or services
You keep a database of personal information on current or past clients
You store sensitive client and employee information, like Social Security numbers or medical information
You make use of IT mediums for your work operations
You are located in any of the 46 states with mandatory data breach notification laws
In the present digital age, protecting yourself against devastating cyberattacks is a must. Call our agents at Mayer Insurance Agency to learn how you can cover your business with the right cyber insurance policy. Contact us today to get started!