What happens when a cyber-attack comes your way and you’re not prepared? In an increasingly digital world, the risk of getting hacked can result in lost data, damaged finances, and lost clients. Cyber liability insurance, however, is here to make sure you will be able to protect your company.
This article will tell you what you need to know about cyber liability.
What is Cyber Liability Insurance?
Cyber liability insurance refers to an insurance coverage policy that protects your company from any instances of a cyber-attack or a data breach. You can receive both first party coverage and third party coverage with this policy plan.
First party coverage includes the following scenarios:
- Investigation costs from hiring experts to help you understand the cyber-attack
- Reputation management
- Recovering lost data
- Revenues lost as a result of hindered business operations
- Restoring computer softwares
- Extortion or ransom costs
- Cost of notifying clients and other third parties about the breach
Third party coverage includes the following situations:
- Legal defense costs arising from client lawsuits
- Defamation or breach of privacy costs arising from the media
If your company ever gets into a situation of facing a data breach, the cyber liability insurance is likely to protect your finances from almost every possible scenario.
Why You Need Cyber Liability Insurance
Cyber-attacks are growing more and more common, and they can be very damaging for your company. Here are some reasons why you need to have cyber liability insurance.
It Protects Your Finances
When your firm is a victim of a cyber-attack, this may result in lost client data, hindered business operations, and significant repair costs for your computer systems. Because of these reasons, it may be financially damaging for you to handle the costs of a sudden data breach.
An insurance plan protects you financially, which will allow you to continue with business operations even in the face of a devastating breach.
It Protects Your Reputation
What happens when a breach occurs and your client’s sensitive information gets leaked or lost? This may not be a good look for the firm.
An insurance plan can protect your reputation by ensuring you have enough finances to spend on legal defense costs against any damaging lawsuits, as well as having the finances to pay an extortion fee.
The Importance of Cyber Liability Insurance for Your Firm
Overall, cyber liability insurance is a must-have in the digital age. This insurance policy protects your firm from various data breach consequences, such as for legal defense costs or to compensate business interruptions.
Even more so, the insurance policy can protect your finances in the face of a sudden attack, allowing your company to financially survive even the most devastating events. It also maintains your reputation by providing compensation during lawsuits, investigative processes, and your attempts to restore lost client data.
Contact us today to get a cyber liability insurance quote.
