So much information is obtained online. Businesses collect and store customer data over the internet, which can be convenient. However, it can also put companies at risk of cyberattacks.
Cyberattacks cost money. From January through September 2021 alone, there were 1,291 data breaches. While the cost of data breaches can vary, it can cost a business up to $10 million to recover. However, investing in cyber liability insurance can help your company avoid the high costs of cyberattacks.
Keep reading to learn more about why your business needs cyber insurance and how it can protect your company from the effects of data breaches.
What is Cyber Liability Insurance?
Cyber liability insurance helps businesses cover the costs of a data breach if one were to happen. Cyberattacks can cost businesses millions of dollars. This comes from costs associated with notifying customers of the breach, legal fees, and monitoring the situation. Cyber liability insurance takes the stress of paying for these services off of business owners so they can focus on more critical actions.
Who is at Risk of Cyberattacks?
Industries most at risk of cyber attacks include small businesses, healthcare companies, and government agencies. Small businesses typically have less money to work with than large companies, forgoing cyber insurance as a result. However, this leaves small businesses unprotected from cyber attacks.
Healthcare companies and government industries house a lof personal information about people, making it even more important to ensure protection from cyberattacks.
While some industries are bigger targets for data breaches due to lack of protection or the information they have access to, all businesses have the potential to be threatened. No matter the industry you’re in, it’s important to protect your business with cyber liability insurance.
How Does Cyber Liability Insurance Help Businesses?
Cyber liability insurance prevents cyberattacks and covers costs related to a data breach. If a business is targeted by a cyber attack, one of the first things it must do is notify customers of the breach to comply with federal laws. However, there can be high costs associated with this part of managing a data breach.
Companies may also have to spend money to monitor the crisis, communicate with other parties, or pay for legal costs. Cyber liability insurance limits the financial impact of a cyberattack on companies by covering these costs.
Protect Your Business Today
It’s clear that cyberattacks are costly and can cause long-term financial losses for companies that are not insured. That’s why it’s so important to invest in cyber liability insurance to protect your business.
Here at Portal Insurance, we make buying insurance easy, simple, and smart. Get started with a quote to start protecting your business today.