Benefits of Cyber Liability Insurance

When working online, any business or organization needs to protect itself from numerous cyber threats. However, despite the precautions, it is always possible for cyber-attacks like data breaches and hacks to occur. They can result in devastating damages; thus, businesses have to deal with business disruptions, lost revenue and litigation.

It is important to remember that no organization is immune to the impact of cybercrime. As a result, cyber liability insurance has become an essential component to any risk management program.

Who needs Cyber Liability Insurance?

Cyber liability insurance, sometimes called cyber security insurance, is a key policy for any business that stores or processes sensitive information should consider cyber liability insurance. Consider coverage if you store data such as customer names and addresses, date of birth, email address, Social Security numbers, medical records, and financial information such as credit card information and bank accounts.

Benefits of Cyber Liability Insurance

Cyber liability insurance can protect your business against the expenses associated with a data breach and covers some risks you might not have even thought of. Cyber liability insurance policies are tailored to meet your company’s specific needs and can offer a number of important benefits, including the following:

  • Data breach coverage.In the event of a breach, organizations are required by law to notify affected parties. This can add to overall data breach costs, particularly as they relate to security fixes, identity theft protection for those impacted by the breach and protection from possible legal action. Cyber liability policies include coverage for these exposures, thus safeguarding your data from cybercriminals.
  • Business interruption loss reimbursement.A cyber-attack can lead to an IT failure that disrupts business operations, costing your organization both time and money. Cyber liability policies may cover your loss of income during these interruptions. What’s more, increased costs to your business operations in the aftermath of a cyber-attack may also be covered.
  • Cyber extortion defense.Ransomware and similar malicious software are designed to steal and withhold key data from organizations until a steep fee is paid. As these types of attacks increase in frequency and severity, it’s critical that organizations seek cyber liability insurance, which can help recoup losses related to cyber extortion.
  • Forensic support.Following a cyber-attack, your organization will have to investigate to determine the extent of the breach and what led to it. The right policy can reimburse the insured for costs related to forensics and seeking out expert advice. Additionally, some policies can provide 24/7 support from cyber specialists, which is especially useful following a hack or data breach.
  • Legal support.In the wake of a cyber incident, businesses often seek legal assistance. This assistance can be costly. Cyber liability insurance can help businesses afford proper legal work following a cyber-attack.
  • Coverage beyond a general liability policy.General liability policies don’t always protect organizations from losses related to data breaches. What’s more, data is generally worth far more than physical assets, and it’s important to have the right protection in place when you need it most. Supplementing your insurance with cyber coverage can provide you with peace of mind that, in the event of an attack, your organization’s financial and reputational well-being is protected.

Businesses purchase several types of insurance, but cyber insurance is still considered an unknown commodity.  You may therefore not be sure whether or why you should consider getting cyber insurance for your business.

Cybercrime is on the rise. What does this mean?  It means that your data is susceptible to being stolen. Cybersecurity should not get overlooked, even though it may seem like these threats will never occur in your business. You need to protect your business from the unforeseen and unwelcome events that can happen in your industry because these events can lead to a complete shutdown. In addition to this, cyber insurance is also helpful when you need to recover from an attack or data loss without having to worry about paying for it yourself.

Supplementing your insurance with cyber coverage can give you the peace of mind that your organization’s financial and reputational well-being will be safeguarded in the event of an attack.

For your insurance needs, contact or email ONYX Insurance now. We can provide you with the best options and services you need for your protection.

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