5 Reasons Your Business Should Consider Cyber Liability Insurance

October 31, 2019

As Cybersecurity Awareness Month comes to an end, we want to make sure you are aware of how to protect your business in the event of a cyber-attack. The last thing your business needs is a data breach that holds your business responsible for important and confidential information.

Here are five reasons why you should consider cyber liability insurance for your business:

1. It covers more than you think

Many policies offer “first party” coverage meaning they will pay you for things like business interruption, the cost of notifying customers of a breach, and even the expense of hiring a public relations firm to repair any damage done to your image as a result of a cyber-attack.

You can also get “third party” coverage which helps defend you against lawsuit and legal claims including fines, media liability claims, or privacy lawsuits from customers or employees.

2. Your general policy will not cover you

Typically, a general liability policy specifically excludes losses incurred because of the Internet. A cyber liability policy can make sure you are fully protected. Be sure your cyber policy covers laptops and mobile devices as well, to give yourself coverage in as many situations as you can.

3. Even if you don’t host your data yourself, you are still responsible

If you store your data in the cloud, you are still responsible for the security and safety of your customers’ information. Most contracts state that you share responsibility with your cloud provider in the event of a data breach.

4. It’s more affordable than you think

Since cyber liability insurance is still a fairly new concept in the industry, there can be a lot of variation among policies. The costs also depend on how much risk your business faces. You can get coverage as high as $30 million and deductibles as low as $10,000 depending on your needs.

5. Cyber-attacks can happen to anyone

Everyone is susceptible to a cyber breach. From small businesses to large corporations, cyber-attacks are becoming more frequent and pose a greater risk than ever before. Be sure to stay up-to-date on ways to protect your business and your devices.

As cyber crimes are on the rise, we can help you asses the risks to your business and get you the protection you need in today’s data-centered world. Contact our agency today to speak with an agent about your options to find the right coverage for you.