In 2022, the average data breach costed $4.35 million dollars. Recovering from a cyber-attack can be costly, but cyber insurance helps keep you and your businesses protected.
What is cyber insurance?
When you run a business, there are physical risks that require you to carry general liability. General liability insurance protects the business against bodily injury or physical damage that might occur; however, it does not protect the business against cyber-attacks. Luckily, there is cyber insurance that covers the business from scammers and hackers who breach the systems to obtain personal data.
Why do I need it?
With the evolvement of technology, cyber-attacks are becoming a more common crime. Some believe that big businesses are the only targets of cyber-attacks. This is false, individuals and small business are at risk of cyber-attacks as well. Cyber-attacks are not just about stealing money, but also stealing personal data. Personal data can be used to obtain credit cards, loans, and more. Cyber insurance can protect you from having to pay out of pocket for those losses.
What does cyber insurance cover?
Cyber insurance covers costs associated with data breaches, including:
-Customer notification cost
-Cost for recovering compromised data
-Cost for repairing damaged computer systems
-Restoring personal identities of affected customers
-Crisis management expenses
-Expenses relating to cyber extortion
What is not included with cyber insurance?
Though some companies provide an umbrella coverage, it’s important to note that there are different policy option that cover various risks. Cyber insurance does not protect a business against:
- Property damage or physical damages, such as claims made to cover cost that might have happened at the commercial site or to an individual who was hurt while on property.
- Professional costs like claims made due to mistakes or omissions made from your business.
- Employment practices in which an employee claims harassment, discrimination, or wrongful termination.
Cybersecurity is crucial with today’s technology. To learn more about ways to stay protected, click here.