As a business owner, it is important for you to consider all of the ways to protect your business. Cyber insurance can help prevent a data breach by providing financial protection and support in the event of a breach or cyberattack. Read below to learn more!
Hackers are on the move. Are you safe?
On average, cyber-attacks cost business owners a whopping 3.26 million dollars (dependent on the size of the company attack, this is subject to change). In addition, over 40% of businesses globally have experienced some form of cyber-attack on their company. Would your business be able to survive this type of hit? If not, let’s talk.
Cyber insurance can cover the financial losses incurred due to a data breach. This includes costs related to notifying affected individuals, legal expenses, public relations efforts, and any fines or penalties imposed by regulatory authorities. Most companies are unaware of the legal requirements after a data breach, resulting in an overwhelming amount of work to recover the data and notify individuals. With cyber insurance, this is out of your hands and taken care of by your insurance company.
Data Recovery and Restoration
It can assist in recovering and restoring lost or compromised data. This can be crucial for business continuity and reputation management. If your business loses all of its information, you have to start from scratch, and it could take years before it is restored to its original position.
Cyber insurance often covers the costs of a forensic investigation to determine the cause and extent of the breach. Identifying the source of the breach can help prevent future incidents.
Breach Response Team
Many cyber insurance policies provide access to a team of experts, including cybersecurity specialists, legal professionals, and public relations experts, who can help manage the breach effectively. As a business owner, you may not have the resources to effectively handle the demands of rebuilding your business from a data attack.
Insurance can cover expenses related to meeting legal and regulatory requirements following a breach. This includes the costs of complying with data breach notification laws.
Cyber insurance may cover liabilities arising from third-party claims due to a breach. For example, if customer data is exposed, affected individuals might sue the organization. Insurance can help cover legal defense and settlement costs.
Some policies offer coverage for ransomware attacks, including ransom payments, which can be a significant threat in the cybersecurity landscape. This means that a hacker can control and take away all of your data and information and won’t return it until you pay a massive lump sum – typically in the form of bitcoin. By obtaining cyber insurance, you prevent having to pay the ransom fee and won’t lose your business to a cyber threat.
Cyber insurance can compensate for financial losses resulting from business interruption caused by a cyber incident. This can include loss of income during downtime. When a cyber event happens, your business is destined to be out of commission until you retrieve the information, an investigation is complete, and new security is in force. Cyber insurance can cover the cost of this waiting period and sustain your employees through it as well.
Phishing and Social Engineering
Policies may include coverage for losses resulting from phishing attacks or social engineering scams, which can lead to data breaches. Employees often receive scam emails which ultimately result in company data breaches. Hackers commonly use similar names and email addresses to deceive employees and obtain corrupted information.
Risk Management Services
Many insurers offer risk management services to help organizations improve their cybersecurity posture. This may include security assessments, training, and recommendations to reduce the likelihood of breaches.
You have to protect your business.
It’s important to note that cyber insurance is not a replacement for strong cybersecurity practices and measures. Organizations should still invest in cybersecurity to prevent breaches in the first place. Cyber insurance is a risk management tool that complements these efforts and provides a safety net in case preventive measures fail.
Before purchasing cyber insurance, it’s essential to carefully review policies, understand coverage limits and exclusions, and tailor the insurance to your specific needs and risks.
Alliance is your one stop shop for all of your business needs. We are eager to protect every aspect of your business and look forward to educating you on additional protection.