Cyber liability insurance can protect your business from financial ruin in the event of a security incident. In the event of a severe data breach, good cyber liability insurance could cover:
- Cost of downtime
- Cost of investigation
- Cost of recovering data
- Cost of legal procedures
- Cost of notifying stakeholders about the incident
- Cost of restoring the personal identities of those affected
You need insurance to protect your property and employees as a business owner. But what about your online assets? Any business with cyber exposure can benefit from cyber liability coverage. You should get cyber liability insurance if your business stores sensitive information online, such as health or personal data.
Here are four reasons why you should invest in cyber liability insurance.
Legal defense: Depending on the severity of the attack, your business may need legal help. Legal counsel for a cyber attack is typically pretty costly. Cyber insurance is an affordable way to cover the cost of legal assistance following a cyber breach.
Lost income: Data breaches aren’t cheap. If a cyberattack forces your business to shut down, you could lose thousands or even millions of dollars. You may need to purchase new hardware if the attack causes permanent damage to your systems.
Ransom: If someone holds your data hostage and demands payment to get it back, that’s called extortion. Some cyber insurance policies cover the cost of investigating such incidents and any expenses incurred in recovering the data.
Reputation: False information about your company that’s shared online can hurt your business’s credibility. Cyberbullying and other forms of online harassment can be covered by some cyber insurance policies.