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Do I Need Cyber Liability Insurance?
Cybercrime continues to run rampant, but does it justify purchasing a Cyber Liability Insurance policy? The short answer is yes. Cyber incidents are not going away, and your business will likely become more digitally engrained, increasing the need for protection against cybercriminals. Enter a Cyber Liability Insurance policy.

Home » General Insurance » Do I Need Cyber Liability Insurance?

Do I Need Cyber Liability Insurance?

Cybercrime continues to run rampant, but does it justify purchasing a Cyber Liability Insurance policy? The short answer is yes. Cyber incidents are not going away, and your business will likely become more digitally engrained, increasing the need for protection against cybercriminals. Enter a Cyber Liability Insurance policy.
When cyberattacks occur, they can temporarily paralyze your business and, in some cases, bankrupt it. Small businesses are forced to deal with business disruptions, lost revenue, and litigation. It is important to remember that no organization (big or small) is immune to the impact of cybercrime. As a result, cyber liability insurance has become a necessary component of any business risk management program. Cyber liability insurance policies are tailored to meet your company’s specific needs and can offer several significant benefits:

Data breach coverage

In the event of a breach, organizations are required by law to notify affected parties. This can add to overall data breach costs, particularly as security fixes, identity theft protection for those impacted by the breach, and protection from possible legal action. Cyber liability policies include coverage for these exposures, thus safeguarding your data from cybercriminals.

 

Business interruption loss reimbursement

A cyber attack can lead to technology failure that disrupts business operations, costing your organization both time and money. Cyber liability policies may cover your loss of income during these interruptions. What’s more, increased costs to your business operations in the aftermath of a cyber attack may also be covered.

cyber liability insurance coverages

Cyber extortion defense

Ransomware and similar malicious software are designed to steal and withhold critical data from organizations until a fee is paid. As these types of attacks increase in frequency and severity, organizations must seek cyber liability insurance, which can help recoup losses related to cyber extortion.

 

Forensic support

Following a cyber attack, your organization will have to investigate the extent of the breach and what led to it. The right policy can reimburse the insured for forensics costs and seek out expert advice. Additionally, some policies can provide 24-7 support from cyber specialists, which is especially useful following a hack or data breach.

 

Legal support

In the wake of a cyber incident, businesses often seek legal assistance. This assistance can be costly. Cyber liability insurance can help companies afford proper legal work following a cyber attack.

 

Coverage beyond a general liability policy

General liability policies don’t always protect organizations from losses related to data breaches. What’s more, data is generally worth far more than physical assets, and it’s essential to have the proper protection in place when you need it most. Supplementing your insurance with cyber coverage can provide you with peace of mind that your organization’s financial and reputational well-being is protected in the event of an attack.

When cyberattacks occur, they can temporarily paralyze your business and, in some cases, bankrupt it. Small businesses are forced to deal with business disruptions, lost revenue, and litigation. It is important to remember that no organization (big or small) is immune to the impact of cybercrime. As a result, cyber liability insurance has become a necessary component of any business risk management program. Cyber liability insurance policies are tailored to meet your company’s specific needs and can offer several significant benefits:

Data breach coverage

In the event of a breach, organizations are required by law to notify affected parties. This can add to overall data breach costs, particularly as security fixes, identity theft protection for those impacted by the breach, and protection from possible legal action. Cyber liability policies include coverage for these exposures, thus safeguarding your data from cybercriminals.

 

Business interruption loss reimbursement

A cyber attack can lead to technology failure that disrupts business operations, costing your organization both time and money. Cyber liability policies may cover your loss of income during these interruptions. What’s more, increased costs to your business operations in the aftermath of a cyber attack may also be covered.

cyber liability insurance coverages

Cyber extortion defense

Ransomware and similar malicious software are designed to steal and withhold critical data from organizations until a fee is paid. As these types of attacks increase in frequency and severity, organizations must seek cyber liability insurance, which can help recoup losses related to cyber extortion.

 

Forensic support

Following a cyber attack, your organization will have to investigate the extent of the breach and what led to it. The right policy can reimburse the insured for forensics costs and seek out expert advice. Additionally, some policies can provide 24-7 support from cyber specialists, which is especially useful following a hack or data breach.

 

Legal support

In the wake of a cyber incident, businesses often seek legal assistance. This assistance can be costly. Cyber liability insurance can help companies afford proper legal work following a cyber attack.

 

Coverage beyond a general liability policy

General liability policies don’t always protect organizations from losses related to data breaches. What’s more, data is generally worth far more than physical assets, and it’s essential to have the proper protection in place when you need it most. Supplementing your insurance with cyber coverage can provide you with peace of mind that your organization’s financial and reputational well-being is protected in the event of an attack.

The Last Word

Data is quickly becoming the most coveted resource, or at least the second most behind cash. Let’s make sure that your data (and other digital assets) are protected.

An InsureGood Advisor can put together a custom cyber liability insurance program for your business to safeguard those digital assets and enable you to do what you do best – build your business!

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