Many small business owners don't consider cyber liability insurance when choosing a business insurance package. It's easy to think of cyber attacks and data breaches as things that happen to large, famous brands or government agencies, not small businesses. However, just because cyber attacks on small businesses don't make big headlines doesn't mean they don't happen — the reality is that about half of cyber attacks are aimed at small businesses. That means that your business is vulnerable, and cyber liability insurance can help.
It Covers Investigative Costs
Some data breaches occur without anyone realizing it. Then, even when the breach itself becomes clear, it can be tough to figure out how it happened. Was it the product of outside attackers or a malicious insider? Were there weaknesses in your digital security network or did data thieves use social engineering to manipulate your employees? There are so many potential ways to launch a cyber attack on a business and figuring out what went wrong can require some specialized expertise, which can come with a high cost.
One thing that is usually covered in a cyber liability insurance policy is the investigative costs needed to find out how the data breach occurred as well as the extent of the damage done by the breach. Making sure that you can get all of the information about how your data breach occurred is an important step in the process of making sure that it can't happen again.
It Protects You From Legal Fees and Court Costs
When sensitive data is breached during a cyber attack, it can result in real harm for the people whose private or proprietary information is compromised. In order to recoup their losses, they may need to file a lawsuit for damages. And, if it's your company that was breached, you may find yourself a defendant in a civil lawsuit.
A lawsuit can be damaging to any business, but big brands with high profit margins can usually weather the damage. They also have the resources and legal power to arrange a settlement. For a small business like yours, a lawsuit after a data breach could be financially devastating. But, cyber liability insurance that covers legal fees and court costs can help protect your company from financial ruin, giving you a chance to bounce back after a data breach.
It Covers Costs to Repair and Restore Your System
You may not think of a digital breach as being damaging in the same way that, for example, a physical break-in would be. But just because you don't see shattered glass or broken locks doesn't mean that no damage was done during your breach. In fact, cyber attacks can do serious and expensive damage to your software and your security systems, and those will need to be repaired in order to protect against future attacks.
This is another expense that is commonly covered by cyber liability insurance. With this coverage, you won't be left with a huge bill for network repair services, or worse – having to decide what you can and can't afford to repair.
Data breaches are a problem that businesses of all sizes and types need to guard against. Talk to your business insurance broker about including a cyber liability policy in your business insurance package.Share