Does My Business Need Cyber Insurance?

The Internet is an integral part of most businesses in today’s world. Whether it be to sell products or services, manage customer relationships, or market your brand, most industries use the internet and technology to simplify operations. A recent study found that 28% of all business is conducted online. When you think about insuring your business, should you consider cyber insurance? 

In this blog, we’ll consider the ins and outs of cyber insurance and who needs it. 

What is cyber insurance? 

Cyber insurance, also known as cyber liability insurance, protects businesses against technology-related losses. These losses can result from phishing scams or stolen technology such as computers, phones, or tablets associated with your business. In the event of an attack, cyber insurance can protect your business against the following:  

• Data Breaches: If customer or employee information (like names, addresses, or credit card numbers) is stolen, the policy can help cover the costs of notifying those affected, offering credit monitoring, and legal expenses. 

• Cyberattacks: If a hacker breaks into your systems and causes damage, the policy might cover the cost of restoring your data and systems and any loss of income if your business is interrupted. 

• Ransomware: If a hacker locks your data and demands a ransom, this policy might cover the ransom payment and the cost of getting your data back. 

Along with helping with the legal fees and expenses that arise from cyber-attacks, cyber insurance also helps businesses repair damaged technology and systems, recover personal data, and notify customers about the breach. Recovering and recreating this sensitive data can be costly, but a policy can help.  

Who needs Cyber Security Insurance? 

Any business with online services and products can benefit from cyber policies. If something happens to compromise the systems used to sell and connect with customers, insurance can protect you and your losses. However, it’s not just businesses with online services that can benefit from these protections.  

Businesses that gather and store customer information online such as credit card information, customer names, phone numbers, or emails can also benefit from cyber policies. If your business stores any sensitive information, you are vulnerable to hacks, scams, or cyber-attacks. Recovering from these attacks and complying with regulations following a breach can be costly. Such attacks are not typically covered by general liability insurance. Cyber can help provide the necessary protection for your, and your client’s, sensitive information.  

To learn more about cyber insurance and if it’s the right fit for you, speak with an insurance expert in your area.