Cyber insurance is an important way to protect you and your business from cyber attacks that happen regularly across the internet.
Here are 8 reasons why you should purchase cyber insurance to protect personal information and private data.
Data Is Not Covered by Standard Property Insurance
Data is critical for any business success, yet it’s not covered by standard property insurance. It’s difficult to measure data from the standpoint of property insurance, which is why you need the expertise of a cyber insurance company to help you in this area.
Everyone Is a Target
Although you usually hear about big businesses being targeted by cyber attacks, it doesn’t mean that small businesses and individuals can avoid being possible targets. In fact, a small business is far more likely to be an easy target because it doesn’t have the financial support to hire an entire IT team to protect their online data at all times.
Credit Data Results in Severe Penalties
If you were to lose any kind of credit data, either from your business, your employees, or your customers, you will have to pay high fines. Credit card crime is a $7.5 billion industry worldwide and is growing every day. The sooner you insure yourself, the better protected your business will be.
Social Media Claims
Unfortunately, social media is a very touchy subject. We share many things on social media both as companies and as individuals, and sometimes we end up making a huge mistake in what we post. If one of your employees makes a defamatory remark, shares your business’ private data, or you happen to be faced with copyright infringement, cyber insurance will help you cover the costs incurred.
Third-party Data Liability
Third-party data is very valuable to businesses and is used all the time to create products and marketing strategies. However, if this data is ever leaked or you happen to lose it, you’ll have to pay huge fines as a result. Lawsuits frequently result from such instances, so you need cyber insurance to cover the costs.
Media Coverage is Expensive
If your business makes a mistake that results in data leaks, not only will you have to deal with lawsuits, but you will also have to deal with the media. You will need to inform both your employees and all of your customers of what has happened and what the next steps are to fix the problem. This costs a lot of money that your business may not be able to spend.
Covers Electronic Business Downtime after a Cyber Attack
Your electronic system downtime after a cyber attack will also not be covered by standard business interruption insurance. On the other hand, cyber insurance will offer coverage for any lost profits during this time so that you can continue to grow your business and provide for your employees and your customers.
Cyber Insurance Protects your Reputation
Yes, everyone can make a mistake, but customers are not likely to forgive you for one that involves their personal data. If you happen to be the victim of a data breach, you will need the help of a cyber insurance company to mend your reputation with your customers. Again, without being covered, expect to pay a lot of money because you may have to issue refunds or the like in order to bring your customers back.
The coverage examples described here are hypothetical claim scenarios and are intended to show the types of situations that may result in claims. These scenarios are not based on actual claims and should not be compared to an actual claim. Whether or to what extent a particular loss is covered depends on the facts and circumstances of the loss, the terms and conditions of the policy as issued and applicable law.