Cyber liability insurance is the new hot ticket item for small businesses, with premiums expected to rise as cyber attacks become more frequent.
Cyber insurance is designed to protect companies against losses they may incur as a result of cyber attacks. In other words, it covers the cost of damages resulting from things like hacking, data breaches and malware infections.
Cyber insurance comes in a few different forms:
Business interruption coverage will reimburse you for lost income when your business can’t function due to a cyber attack. This includes lost profits, wages and supplies needed to operate your business.
Data recovery coverage will help you recover from the loss of data stored on computer systems and networks connected to those systems. It includes software costs, hardware costs and labor costs associated with restoring files from backup copies or from original sources such as hard drives or tapes.
Legal defense coverage will pay for legal expenses related to defending yourself against lawsuits brought by customers who have been affected by a cyber attack at your company’s expense.
Why Do Companies Need Cyber Insurance?
Cyber security has become more important than ever before. The number of cyber attacks is increasing, and cyber criminals are becoming more sophisticated. This means that the potential costs of being hacked are also increasing, which makes it even more important for businesses to be protected by cyber insurance.
Cyber liability insurance for small business is especially important for small businesses because they are often the targets of cyber attacks. These attacks can be very expensive for a small business and can have a significant impact on their bottom line. The cost of cyber insurance is relatively low compared to the potential costs of a data breach or other cyber incident, which makes it an excellent investment for any business owner.
Cyber insurance is a smart investment for any company that uses technology or connects to the internet. Even if you don’t think your business would be a target, cyber criminals can easily find ways to attack your data. With so many businesses relying on computers and electronic devices, it makes sense to protect against losses due to hacking attacks.