Business owners must mitigate all types of risks, which include risks to your cyber security. Many different strategies exist to protect your company’s data, but that isn’t always enough. With the heightened risk as more data moves to servers, your company needs to find better ways to deal with these potential troubles. Many businesses have started to turn towards cyber liability insurance as a protection against the risks they face.
What are the Risks?
It is important that you know what the risks are to your business. Data is becoming a key driver in business decisions, and that makes it a valuable item. The current trend of storing payment methods increases the risk to your business and your clients. A cyberattack causes loss of data, releasing personal information, releasing banking information, and potentially shutting your business down. All of these have long-term consequences, which have destroyed businesses in the past.
Who is at Risk?
Large companies are in the news because of the huge number of accounts that are impacted in a data breach. Many businesses large and small are at risk because they haven’t taken the necessary steps to protect themselves. Small time hackers like to target smaller businesses because they are easier to hack, and still cause enough trouble to make it worthwhile for them. In other words, businesses of all sizes are at risk.
How Does Insurance Help
The different insurance products on the market provide a range of services. With cyber liability a newer concept, there isn’t a well-defined product available right now. The policies from different insurance companies vary greatly at this time. You need to carefully go through the insurance policy to make sure you have as much coverage as you would like.
Typically, your insurance company offers cyber security liability policies include items such as:
- Network and information security liability – This protects your business from claims or suits against you because of unauthorized access to personal data.
- Security breach notification and remediation expenses – In the event of a data breach, your company must promptly notify customers who may have been impacted. This coverage protects your company from the cost of that notification.
- Business interruption and data restoration expenses – After a cyber breach, your company must struggle to get back up and running. This costs money, and with the right coverage, your insurance is there to help.
- Public relations consultant – One of the biggest hits your business faces with a data breach is the tarnishing of your reputation. Some insurance companies offer a public relations consultant to help build your company back up in the eyes of the public.
Some policies have variations or additions to this list of coverage. Talk to your agent to ensure your protection is enough for your business.
Cyber security is an ever growing, and ever changing, concern for businesses in today’s world. With the risks growing, and more vulnerabilities being found every day, you need to protect your business. While you take the best steps to prevent data breaches, they still do happen. At Idealstor, we work with you to make sure your data is as safe as possible. To learn more, contact us today.