In the past few years, some of the biggest names in business have demonstrated how critical cyber liability insurance is after experiencing a data breach.
Even companies with iron-clad data protection can fall victim to a vicious cyber attack. Cyber liability insurance is the only way to ensure the aftermath won’t take down your business. A cyberattack’s collective impact is almost unfathomable, but it doesn’t have to be fatal.
You know that commercial cyber liability insurance will help your business after a cyber attack, but how? At its most basic level, cyber insurance is a financial safety net. The costs of stopping a cyber attack, notifying your employees and clients, and repairing compromised software are bad enough, but a client may go one step further and sue you for damages. The financial repercussions of a data attack could be enough to make your business go under.
Most companies nowadays store at least some private information on computers. Small businesses are most vulnerable to stolen data because their IT departments are small or nonexistent, and they may not have the funds to outsource their cyber security needs. And whereas large businesses may be able to drop cash to take care of a cyber lawsuit, a small business probably can’t do so. Cyber liability insurance will pay on your behalf to ensure you don’t drain your savings to pay for suit costs.
Suppose you store a private client’s personal identifiable information in a database, and a cyber criminal gains access to this information. You have to cease business operations to control the data breach, notify your staff and clients, and try to make up lost income while your business recovers. Plus, when your client finds out a hacker stole their data, they sue you for damages. With a cyber liability policy, you don’t have to deal with the financial aftermath.
Cyber liability insurance covers a variety of scenarios during and after a cyber attack. For example, during a ransomware attack, a cyber criminal might demand a $300,000 ransom to unlock your computer system. Your ransomware insurance would cover the ransom payment.
Your policy would also pay for a public relations firm to perform damage control for your company after a data leak or cover credit monitoring services for clients whose sensitive information was compromised. Defense costs during a cyber-related lawsuit would be covered, regardless of the outcome. Plus, if you lost business income because you couldn’t work during and after a data breach, your policy would reimburse you.
As a business owner, you may not know if you need cyber liability insurance or what limits are right for your needs. Our Southpoint insurance experts do the work for you to make sure you’ll be fully protected during a cyber attack.
You know you wouldn’t have the money to deal with a cyber attack, so you have decided to supplement your other business insurance coverages with commercial cyber liability insurance. But how do you know what optional coverages you might need and what policy limit will be sufficient to cover all your costs during a cyber event?
Depending on how you run your business, you may be extra susceptible to a data breach or phishing attack. Our industry experts at Southpoint take the time to learn about your business and identify the cyber risks that make you vulnerable. Because cyber needs are always changing, we will work with you year-round to reevaluate your coverage.
Southpoint works for you, not your insurance company, which is why we can use our industry relationships to find you the best coverage at the best price. Our team has a better understanding of the insurance marketplace than other agents because every team member has at least five years of experience under their belt. You can trust any of our Southpoint experts to answer your coverage questions and guide you in your insurance journey.
Contact us now to take advantage of our cyber insurance expertise and find the perfect policy for your business.