3 Reasons Why Businesses Need Cyber Insurance

cyber liability insurance

A quick glance at recent headlines reveals the ever-increasing threat of digital attacks. If conducting business online or storing client data, institutions are susceptible to attack. Purchasing cyber liability insurance helps provide valuable protection against this growing threat in the following three ways.

1. Close Gaps in Business Coverage

Traditional insurance policies do not always include cyber protection. Cyber insurance is customizable and can help close important gaps to provide a full measure of coverage.

2. Mitigate Digital Risk Affordably

When deciding to purchase coverage, consider that over half of small businesses are ill-equipped to withstand a cyber attack. Potential damage can include the following:

  • Decreased productivity and work stoppage
  • Customer lawsuits
  • Expensive regulatory fees for exposing client data
  • Investigation fees and repair costs
  • Damage to brand and company identity
  • Staggering costs of notifying customers and offering credit monitoring

In short, without adequate protection, data breaches can bankrupt companies. Cyber insurance can be quite affordable, and companies can take steps to lower costs by assessing risks and strengthening digital security practices.

3. Fulfill Ethical Responsibilities to Customers

Businesses have a responsibility to treat customer information with the utmost security. While coverage cannot prevent against all attacks, it will typically give customers added faith in a company’s brand and commitment to data safety. Cyber liability coverage communicates the insured company’s willingness to protect customers.

Seek the help of an expert insurance provider. With it, businesses can make cyber insurance part of their comprehensive plan to ensure digital safety and security today.