Does Your Business Need Cyber Insurance?

What is cyber insurance?

Cyber insurance is a type of insurance that helps protect businesses from loss in the event of a data breach or cyber attack. These policies can help cover the costs of recovery, including business interruption, data loss, and legal fees.

Does your business need cyber insurance?

Cybersecurity experts recommend that businesses of all sizes purchase cyber insurance. Here are some reasons why:

Data breaches are becoming more common.

In 2019, there were over 1,000 data breaches in the United States alone. This number is only increasing as time goes on, which means the likelihood of your business being impacted by a data breach is also increasing.

The cost of data breaches is rising.

The average cost of a data breach in 2019 was $8 million. This number is expected to rise to $13 million by 2020. If your business suffers a data breach, having cyber insurance can help offset some of these costs.

You may be required to have it.

Depending on your industry, you may be required to have cyber insurance. For example, many healthcare organizations are required to have it in order to comply with HIPAA regulations.

It can help you recover quickly.

Cyber insurance can help you get back up and running quickly after a data breach or cyber attack. It can cover the costs of data recovery, business interruption, and more.

It shows you’re serious about security.

Purchasing cyber insurance shows your customers and clients that you’re serious about protecting their data. This can help build trust and loyalty, which is essential for any business.

It’s not as expensive as you might think.

Many businesses mistakenly believe that cyber insurance is too expensive. However, the cost of a policy is often much less than the cost of recovering from a data breach.

It gives you peace of mind.

Knowing that you’re protected in the event of a data breach or cyber attack can give you peace of mind. This alone is worth the cost of a policy.

What happens if you don’t have cyber insurance?

If you don’t have cyber insurance and your business suffers a data breach or cyber attack, you could be facing some serious financial consequences. You may be responsible for the costs of data recovery, business interruption, legal fees, and more. In some cases, you may even be liable for damages if sensitive customer or client data is exposed.

Where can you get cyber insurance?

There are a number of insurance companies that offer cyber insurance policies. Be sure to shop around and compare policies before making a decision. For example, some policies may only cover certain types of data breaches while others may provide more comprehensive coverage.

Bottom line

Cyber insurance is a type of insurance that helps protect businesses from loss in the event of a data breach or cyber attack. These policies can help cover the costs of recovery, including business interruption, data loss, and legal fees. Don’t wait until it’s too late – if you don’t have cyber insurance, now is the time to get it.