According to Forbes, cybercriminals can penetrate 93 percent of company networks. A majority of businesses store most, if not all, of their data digitally. As a result, a data breach can be catastrophic to a company.
Cyber Insurance Coverage Checklist: The Top 5 Benefits
Worried that your business is at risk? It’s time to get cyber security insurance or enhance your existing policy. Keep reading for this cyber insurance coverage checklist that covers the top 5 benefits of this type of business insurance.
1. Cybersecurity Insurance Covers Intangible Property That General Liability Insurance Doesn’t
Your commercial general liability insurance doesn’t cover cyber breaches.
On the other hand, cybersecurity insurance protects your business from cyber attacks, extortion, and crime. Thus, cybersecurity insurance is the perfect addition to general liability insurance.
Together, they ensure your businesses’ continued success and safety against a variety of scenarios.
Interested in finding the right cybersecurity insurance for your business? We work with the top carriers in this category to find you the best coverage for your needs. Set up a time to chat with us today!
2. Cyber Insurance Coverage Gets You Back On Your Feet
In the event of a cyber attack on your company, cybersecurity insurance helps get you back in business in the least amount of time possible. Cyber attacks can either be like a mouse in a pantry, or like a bull in a china shop—a mouse in a pantry knows what it wants, and quietly takes what it needs.
On the other hand, a bull in a china shop makes its presence known and destroys everything in sight. Similarly, cyber attacks can either creep in silently and leave minimal damage, or they can be a sudden, disruptive catastrophe.
In any event, cybersecurity insurance assists in covering the expenses of repairing damages such as repairing computer systems and restoring important customer identity data.
This is of extreme priority for small businesses, as this expense might otherwise drain company funds.
3. Helps Recover Financial Losses
Cyber breaches can prevent your business from being able to run. If your business can’t operate, profits can’t be made.
In addition to recovering damages, working with the right cybersecurity insurance provider can help businesses recover financial losses caused by cyber attacks. It can help make up for lost profits, if your business is shut down after a data breach.
Contact us today to learn more about our customized cybersecurity insurance packages.
4. Supports Crisis Communication
Michigan businesses are required by state law to notify their customers and clients of a data breach if their personal information is at risk. It’s important to protect your client relationships and your company’s reputation in the event of a data breach.
However, finding the right words to say in this situation is not easy. That’s why hiring professionals to handle communications is a worthy investment. However, it can also be expensive for the business.
Cybersecurity insurance often helps cover the costs of working with PR professionals and law firms to contact customers regarding a data breach.
5. Provides Legal Protection
Your business is obligated to protect customer privacy and sensitive data. In the event of a data breach where this data is leaked, your company could face a variety of legal complications.
Cybersecurity insurance carriers will engage a law firm on your behalf to address potential lawsuits and cover the cost of defense. This expense would otherwise be an extreme detriment to your business, both in cost and in protecting customer relationships.
We’re ready to help you find the best cybersecurity insurance that meets your business’s needs and budget. Contact us today with any questions, or to request a quote!
