Does Your Business Need Cyber Insurance?

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What is cyber insurance? 

Cyber insurance functions to protect your company from various threats in a digital world; from hacks to data breaches and theft. Cyber insurance is sometimes referred to as cyber liability cover. While you’ll likely have your own cybersecurity measures in place, insurance can offer support should the worst happen. 

Does your business need cyber insurance? 

Any businesses who are using, storing or sending digital data will benefit from cyber insurance. The policies set out will cover costs associated with corrupted, damaged or lost data. Cyber insurance policies will cover third-party data, as well as the company's own data. Insurance will protect you against several different potential threats. For instance, an attack on your social media presence or personal data. You’ll also be protected if any wrongful payments are authorised via your bank. As well as this, you’ll receive protection against phishing or malicious programs. Cyber insurance arrives with many advantages for any business; let’s take a look in a little more detail. 

Costs associated with cyber extortion 

If your company is taken down by ransomware a cyber insurance policy can cover the expenses. Ransomware works to steal your personal data until you pay a demanded fee. Costs covered here could also involve prevention of future threats or hiring in experts to negotiate. Cyber attacks can cause immense stress upon your company and yourself. With the right cyber insurance to protect your business, you can gain back some peace of mind. 

Privacy breach expenses 

Cyber insurance policies will generally cover your privacy liability expenses and breach costs. If your company handles personal information, and the privacy of this information becomes compromised, cybersecurity will cover the costs. Insurance can also cover the expenses associated with electronic data loss. Any costs of recovery are taken care of. 

Business Interruption 

Often, companies will experience attacks that affect daily business operations. A cyber-attack might mean that you experience IT issues or that your web servers go down. Cyber attacks can bring business to a standstill for any time frame from hours to days. With a cyber insurance policy, you’ll gain cover on the loss of income that you experience due to an attack. 

Electronic media liability 

Some cyber insurance packages will involve cover like electronic media liability. This is intended to protect third-parties in the event of copyright infringement. As well as this, the misuse of property online or claims of defamation. Another third-party lost covered is regulatory breach liability. This refers to any legal expenses should there be an investigation by a government regulator. 

As our digital landscape develops, cyber attacks are on the rise. If you use cloud-computing you’ll want to invest in a robust cloud computing security system. The intelligence of cyber criminals advances all of the time. A good cyber insurance policy can provide you with the best defences in a worst case scenario. With some great protection in place, you can relax and focus on the other important aspects of your business success

Alison Morgan