Do you own a business and are unsure if you need cyber liability insurance? If so, you likely have a few questions about getting a policy.
Why Do You Need Cyber Liability Insurance?
There are many things that cyber liability insurance does to protect you and your business. This type of insurance is designed to provide you with financial compensation for the damages caused by a cyber attack on your business. This could include the costs associated with recovering lost data, downtime due to your website being down, and losses incurred in order to restore things to the way it once was. You could also have liability caused to clients that you work with if their data was damaged or stolen.
How Do You Know If Your Business Is Vulnerable to A Cyber Attack?
Every business owner will need to assess their own needs when it comes to cyber liability insurance. That's because there are many factors at play that determine if you have some sort of risk associated with loss of data.
For example, you may have trade secrets on your servers that are very difficult to recreate. It may make sense to spend money on cyber liability insurance due to the time necessary to recreate lost data. Meanwhile, a business may only be using servers as a file repository and not storing data that is sensitive at all. They may determine that they don't need cyber liability insurance.
Is Cyber Liability Insurance Affordable?
One thing to keep in mind about cyber liability insurance is that it is not going to be cheap. It is not a required type of insurance, and the companies that buy cyber liability insurance tend to be the ones that are most at risk of needing it and end up using it. This means that you need to shop around and get quotes on cyber liability insurance to determine if you can afford it or not.
When Can You Use Cyber Liability Insurance?
It's very important that you look at the terms of a cyber liability insurance policy and understand the specific situations where it can be used. For example, you may find that it covers ransomware from an outside party, but it does not cover theft of files from someone that works within your company. You may have coverage for data loss and corruption due to hardware failure, but not from accidentally deleting files due to human error.Share