Even if your business is not technology-centered, you likely have electronic data. The use of electronic data has increased convenience, speed, and efficiencies, but it's also increased cybersecurity threats. Therefore, you should optimize your cybersecurity practices and carry a solid cyber liability insurance policy.What is Cyber Liability Insurance?Cyber liability insurance covers financial damage that emanates from cybersecurity issues like cyber breaches. The policy will typically cover financial losses resulting from data breaches, denial of service, hacking, viruses, and other cybersecurity incidents. These include regulatory penalties and legal expenses emanating from civic suits. Your cyber liability insurance will also go beyond the basics covered by your general liability policy, which typically doesn't cover data breaches and cyber-attacks.Who Needs Cyber Liability Insurance?It's in the best interest of all businesses to carry cyber liability insurance. For instance, if your business sells products or services online ' a process that entails storing and maintaining sensitive data, including contact information and credit card numbers, you should consider getting cyber liability insurance. A data breach means furious customers, lost sales, diminished credibility, and other negative effects down the road.What Does Cyber Liability Insurance Cover?Cyber attacks are costly; Ponemon Institute and IBM estimate that the average cost of data breaches is $3.8 million, and it takes up to 280 days to identify and manage a breach. Your cyber liability insurance can cover the following:
Why is Cyber Liability Insurance Vital?Cyber attacks can be devastating. 60% of small businesses fold up after a cyber attack. Once hackers have gained access to your customers' and employees' information (home addresses, credit numbers, and Social Security Numbers), they can wreak havoc on the affected individual's lives. Hackers can also steal your business's funds and ruin your credit. If you're contemplating whether you need cyber liability coverage, think of the costs that come with fixing the damage caused by cyber attacks. The expenses include:
How Humble & Davenport Insurance Brokers Can HelpThe extent of potential losses resulting from cyber attacks is more than most businesses can shoulder without proper cyber liability insurance coverage. For business insurance policies that will adequately protect your business, contact our experts at Humble & Davenport Insurance Brokers, Inc.