Should your business get Cyber Insurance?
According to data security experts, regardless of the scale and size of your business, sooner or later it is going to be breached by hackers. In fact, your business may have already been hacked without you even being aware of it.
If you’re a business owner, then this is indeed a very scary thought, but one that could materialize anytime. In order to protect your business from hackers that may compromise your reputation, it’s highly recommended that you insure it. You may think that you have very little or no say in what you can do in order to protect yourself from such attacks, but the truth is that you can choose to buy cyber liability insurance.
What is Cyber Liability Insurance?
Upon purchasing CLI, you’ll be able to protect your business from third party and first party risks that are generally associated with taking your business on the internet. The insurance policy covers viruses, internet related intellectual property infringement, but also privacy issues and more.
Who needs Cyber Liability Insurance?
Basically, anyone that has a website and interacts with a wide range of people should get CLI. This includes website publishers and commercial businesses. Even more, if you’re someone who asks his clients to trust a third party vendor, yourself or you’re someone who conducts business on the internet (even partially), then you need to seriously consider buying CLI.
What does Cyber Liability Insurance cover?
CLI covers a lot and it’s very similar to many other types of insurance. To the point, CLI protects you in the event you lose sales due to a breach that makes it impossible to conduct business anymore. The policy will also cover the cost of notifying your clients of the breach. If you’re a small business, then this type of coverage is very important for you. In fact, it can make the difference between being able to stay in business or closing it down.
Am I Covered If I Have Business Liability Insurance?
You are, unfortunately, not covered with business insurance, since it doesn’t cover cyber liability. Because of that, it’s recommended that you get in touch with your current insurer and ask them about cyber liability insurance. When you consider buying more than one policy from the same insurance agency, they’re going to be more than happy to offer you a discount, so don’t hesitate to ask them for one.
What Happens If You Don’t Have Cyber Liability Insurance?
When you don’t have CLI, if your business experiences a data breach, then you and your company are going to be fully responsible for it. This includes crisis management, lost information retrieval, communication with clients, but also loss of business and information leaks. Even more, if your clients sue you, then you’re going to be responsible for all the court settlements and the fees as well.
My Clients’ Data Is Handled By a Third Party
You may think you’re safe if a third party handles your clients’ data, but that is not really true. In fact, you’re still going to be responsible for potential losses if their data is breached and stolen and that’s because it’s your duty to keep it safe. You are right when you say that it’s in the third party’s best interest to ensure the data is kept safe, but so far no data management system is impossible to breach. If you have CLI, then you’ll be protected in the event your third party host does suffer a breach.
My IT Team Can Handle It
If you’re a small business, then it’s impossible for you to be able to afford hiring a few IT specialists that can patch security holes. However, even if you don’t have the budget for that, you can still protect yourself by purchasing CLI. All you need to do is speak to an insurance company about your needs and they’re going to be more than happy to help you get the right policy for your needs.
We’re living in a very connected world and conducting a business on the internet can be very risky. This is especially the case for companies that handle sensitive client data and intellectual property. Finding yourself in the situation where your company is breached and important data is stolen is a nightmare. Luckily, you can avoid the costs associated with it by getting cyber insurance liability. To see if you require it, check your business’ online footprint and then speak to an insurance company.