How your small business could benefit from cyber liability coverage.
In the Internet-dominated business age, companies store more sensitive information than ever on their computers. However, a shockingly low number of small businesses have invested in cyber liability insurance to combat the potentially devastating effects of a cyber-attack. Hackers are getting more advanced in their methods, yet small businesses remain vulnerable. Stolen data can cost a business a lot of money, no matter what their size. Here’s what you should know about this type of insurance.
What is it?
Cyber liability insurance is designed to help businesses handle a data breach or cyber-attack by covering related expenses. If a cybercriminal breaks into your system and steals sensitive information, your company could be held liable for this accident. Having cyber liability insurance in place ensures that your business has financial protection in such an event.
Why do you need it?
As a small business owner, you may think that cybercrimes only happen to larger companies or that your data isn’t important enough for an attack. This is not the case. In fact, hackers find that smaller businesses have fewer (if any) digital security defenses in place, making their job easy to snatch important information. Unfortunately, smaller businesses don’t always have the funds to recover from an attack and are forced to close their doors.
What does it cover?
Cyber liability insurance can cover the costs of notifying your customers about a breach, the expenses associated with crisis management and public relations, as well as the fees associated with repairing damaged computer systems and parts. What’s more, this coverage includes business interruption expenses so that your business can stay up and running despite the lack of income.