Companies are turning to online platforms and advanced software to promote and run their businesses. Online shopping has evolved to be even more convenient for retailers and buyers. However, companies must be wary of the possible cyber security issues they may encounter.
Cyber liability insurance can indemnify corporations from cyber hackers. You don’t have to be tech-savvy to realize the importance of this type of liability insurance policy. This article will tackle how cyber liability insurance benefits small businesses.
Cyber Liability Insurance Explained
Cyber liability coverage helps cover losses incurred during a cyber-attack. The coverage policy usually covers the cost needed to notify affected customers and restore data, programs, or software your company needs to operate.
Apart from this, the policy can also compensate for income lost due to the attack.
Benefits of Cyber Liability Insurance
Any business owner would be wise to invest in a cyber liability insurance policy. Here’s how your business can benefit from this insurance policy.
Helps notify customers about a data breach
Depending on your location, the law may require your business to inform affected individuals about the data breach your company has suffered. Your insurance covers the cost needed to comply with the law.
Compensates for losses during a business interruption
If your business operations are directly affected by a hacker’s attack, then the coverage policy can cover losses during this time. In addition, the policy covers lost income and expenses incurred to get your company back on track.
Several cyber liability protection policies also cover income lost due to a data breach experienced by your supplier or distributor. It’s best to check for this coverage before getting an insurance policy.
Repays cost for data restoration
It’s no doubt that your systems and software contain sensitive information. With this type of insurance policy, you are compensated for the cost of restoring data, programs, or software damaged during an attack.
Covers crisis management expenses
After an attack has occurred, your company must get a crisis management team ready. Depending on your policy coverage, costs for hiring a lawyer, computer expert, or public relations expert can be covered.
Your crisis management team is responsible for determining the extent of the damage caused by the attack. Aside from this, the team must also identify which data was compromised and help protect your brand and reputation.
Cyber Liability Insurance for Small Businesses
Does your company handle the personal and financial information of employees and customers? If so, then it’s best to have cyber liability insurance.
Small businesses that do not encrypt their data or update their software are more vulnerable to hackers. When a data breach, hacking, or cyber-attack occurs, most small businesses have difficulty recovering from settlement and legal fees.
Many may assume that your general liability insurance has coverage for data breaches and cyber-attacks, but it doesn’t. Opting for a separate and more cyber-security-inclined insurance policy is wiser.
Cyber liability insurance saves your company from lost income and unwanted business interruptions.
The protection policy ensures that your business can and will continue to operate even after an aggressive cyber-attack. Review the insurance coverage and limitations that best fit your corporation.