Every company needs business insurance to protect itself. However, one kind of insurance you may not even have heard of is cyber insurance. This insurance is extremely important for businesses. In the modern world, there are many ways that the internet can harm your company. Cyber insurance provides some protection so you can survive such incidents. Below are six reasons every company needs this coverage.
1- Everyone is Targeted
If you thought only huge corporations were targeted by things like hackers and malware, you would be mistaken. According to Forbes, the most common targets are small businesses. As far as business goes, no one is safer from these threats. In all likelihood, it’s only a matter of time before you are hit with a cyberattack.
2- Cyber Insurance Can Protect From Many Potential Losses
There are many things cyber insurance can cover. This includes things like legal costs, data recovery, hardware and software repair, lost income, forensic investigations, and more. Keep in mind that it’s not only after the attack that you will suffer losses. Things like lost income can be very hard to calculate.
3- Your Data is Extremely Valuable
One of the most valuable things any company has is its data. This is especially the case today when a lot of a company’s competitive advantages are tied up in things like their customer and sales data. This data can be analyzed by powerful software to help companies plot strategies for the future. Without it, you may even lose your ability to sell your existing customer base on new products. Cyber insurance can help you get your data back.
4- It Gives You Access to Expertise
Another thing that cyber insurance coverage can help give you is access to the expertise you need to find out why a cyber attack happened. Having your own cyber security experts in-house can be extremely expensive and not something a small business can afford. However, cyber insurance can help pay for the forensic investigation to figure out just who attacked you, how they did it, and what you need to do to prevent future attacks.
5- It Protects You From the Legal Fallout
Something that cyber insurance can cover is legal expenses. This includes legal expenses related to settlements and lawsuits up to a certain amount. While it may not be obvious immediately after a cyber attack, the fallout could certainly include lawsuits from angry customers and business partners that ended up being harmed by the attack in subsequent days as their stolen data is used for malicious purposes.
6- It Protects Your Customers
Most importantly, perhaps, is that cyber insurance helps protect your customers. It can help mitigate an attack so their data isn’t used to defraud them. It can also be used to pay for the cost of alerting those customers that their data has been affected so they can take steps to protect themselves.
Overall, every business should have cyber insurance because every modern business has a high likelihood of being targeted by a cyber attack. Make sure you have the coverage you need to protect your business.