Insurance News Utah
Hatch Insurance Group
What Is Cyber Liability Insurance And Why Your Business Needs It
Operating any type of business is complicated. Most people may think that if you have a good idea and offer something that people want, they can operate a successful business.
Those two things are important, but they are only the start to running a successful business. A business has many things that they need to do right and to be concerned with, and that list is growing longer every day. In the business world today, there is a new threat that must be dealt with by businesses, big and small. The possibility of having a business attacked by a cybercriminal is a big threat that is growing at a rapid pace. There have been studies done that suggest that 90% of businesses that use computers have had their systems breached within the past year. The loss of data from breaches is surpassing $1,000,000,000,000 a year. Cyber crimes destroy businesses. The biggest problem is that most people think that the cyber criminals only attack the big companies. They do not realize that all companies are at risk, no matter how big or small. In fact, small companies (<100 employees) are the largest targets because their computer systems are easier to attack. All companies would may be smart to take advantage of some of the security measures that are available. They may rely on things such as:
- Security software
- Employee training
- Working with secure partners and networks
Despite the best efforts of a business, data breaches still happen and that is when they need their final line of defense: Cyber Liability Insurance. What is cyber liability insurance?
Cyber liability insurance is a type of business policy that can provide compensation to help cover the expenses that can result from a cyberattack on a business. It is estimated that the cost of a data breach is more than $200 per file breached. Having insurance to help recoup that cost can be the reason that a business is able to remain open. The protection that Cyber liability insurance offers will vary, but some of the most common things it can help with are:
Unauthorized access – This is one of the most common forms of data breaches. If a credit card number or other personal information is stolen from a business, they can be on the hook for any costs associated with the theft.
Private Information Breach – If a business collects any private information on their computer networks, it is at risk of attack. Insurance can help pay for any damages that result from theft of private information and to help recover any lost information.
Human mistake – many of the problems of cybercrimes are the results of human mistakes, but insurance can provide protection from these.
Extortion – This is becoming more common. Businesses are held hostage by cybercriminals and stand to lose a lot of money, but insurance can mitigate the losses.
Malware – The costs associated with malware are often very high. Not only can information and data be compromised, but repairing and removing the malware can be costly as well, unless a business has insurance to help cover the damages.
The most successful businesses are the ones that take a proactive approach to securing their data. They deal with problems before they become a problem. Having cyber liability insurance is a proactive approach to dealing with a problem that is threatening all businesses around the world today.