These days, businesses are turning to modern technology to simplify operations and ensure profitability. However, this move also comes with some risks, including online attacks. Hackers utilise the same latest technologies to access business systems and steal data.
Cyberattacks can harm your company in many ways. When you lose data, you’ll likely experience downtime as you wait to solve the issues. And in extreme scenarios, you might be forced to completely shut down your store, especially if you can’t recover the lost data.
Furthermore, online attacks will likely hurt your brand’s reputation. If customers learn that your systems and their data are vulnerable to online attacks, they’ll likely review your company negatively. As such, you’ll probably lose current and potential customers, affecting your revenue. This is why you should consider investing in cyber liability insurance.
Here are the top benefits of cyber IT liability insurance.
1. Reimbursement For Company Loss
As noted earlier, one of the major consequences of online attacks is increased downtime due to interruptions. And that implies lost revenues and profits, thus affecting the success of your business. That’s why you need to subscribe to cyber liability insurance. It’ll compensate you for any revenues that were lost as a result of the cyberattack.
Moreover, the insurance provider will cover the cost of recovering the lost data. You don’t need to spend anything to cover any cyberattack-related expenses. This way, your company can maintain an efficient cash flow and remain afloat.
2. Coverage For Data Breaches
Customers may sue your company if their personal information is stolen or accessed by unauthorized people. This may attract huge costs since the law may require you to compensate such clients for the damage.
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Furthermore, you’ll likely need to hire a lawyer to represent you in the legal process. All these add to your overall data breach costs.
Cyber IT liability insurance will cover all your data breach costs, including customer compensation, identity theft, and litigation costs. Therefore, you don’t need to worry about using your own money for cybersecurity legal actions.
3. Defense Against Cyber Extortion
Cyber extortion is one type of criminal activity in the digital world. It involves cyber criminals forcing business owners to give up money or sensitive data.
The common forms of cyber extortion are ransomware attacks and phishing emails. As these criminal activities increase daily, it’s crucial to invest in cyber liability insurance, which will help cover losses and costs related to cyber extortion.
4. Digital Forensic Investigation
Immediately after a cyberattack, you must conduct a thorough investigation to determine the source of vulnerability and the extent of the data breach. This enables you to set up adequate preventive measures to safeguard your business against similar issues in the future.
But this process will likely cost you huge sums of money. The right cyberattack liability insurance should cover any expenses associated with digital forensic investigation and the cost of hiring an expert who will advise you on your cybersecurity strategy.
5. Digital Assets Replacement Costs
Digital assets contain a lot of company information, and most business owners use them to make strategic decisions. So, if they’re stolen or altered by cybercriminals, you must replace them immediately. Otherwise, your business will suffer.
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While that’s the case, replacing digital assets can be an expensive process. For instance, you may need to hire creators to help create and publish new blogs and videos to replace the lost content. And this hurts your company’s profitability. Luckily, your cyber liability insurance will be able to cover the cost of digital assets replacement to ensure your company remains afloat.
6. Reputation Damage Compensation
As noted earlier, cyberattacks may hurt your company’s reputation. And this can affect your sales and profits. You can approach your cyber liability insurance provider for compensation if you incur profit loss due to online attacks.
7. Liability Litigation Costs
In most cases, your company will be sued in its own name for cybersecurity attacks. But in some circumstances, the law may require lifting the corporate veil to identify the individuals responsible for the mess. In such a case, you and your management team may be personally liable for the online attacks.
Cyber liability insurance will cover the costs associated with defending you and the management team from cyberattack lawsuits.
Investing in business insurance ensures smooth operations for your company in the foreseeable future. It helps protect your business from losses that may arise during normal operations.
Cyber liability insurance is one of the insurance policies you can get for your business. It safeguards your company against costs associated with online attacks. However, partnering with the right insurance service provider is a must.