Cyber insurance coverage is an absolute must for businesses of all sizes. Cyber risks are on the rise, and businesses can face immense financial losses due to a cyberattack or data breach. Equifax is just one of these examples where cyber insurance was invaluable. In 2017, they were the victim of a data breach that exposed the private information of 147 million people.
Without proper cyber insurance coverage, they would not have been able to cover the immense costs incurred during the investigation and notification process—which totaled up to 425 million.
Let’s go over why businesses need cyber insurance coverage and how the proper IT provider can help you avoid paying for cybercrime.
Why Do Businesses Need Cyber Insurance?
Cyber insurance is a useful tool and security measure that can help protect businesses. Without cyber insurance coverage, businesses are liable to the following:
1. The Cost of a Data Breach
When a business experiences a data breach, it can be hit with high costs that go beyond the cost of the data breach itself. From forensic investigations to credit monitoring services and fines, these costs are on top of the average cost of a data breach.
No matter if your business is small or big, none can afford the cost of a data breach. But when you take the necessary steps to prioritize cyber insurance beforehand, it can help cover these costs so the business can still stay afloat.
2. Compliance Breaches Are Serious
Different compliance regulations are in place to protect private data. If your business is subject to different compliance regulations and experiences a breach, it can be hit with hefty fines from the government; not to mention an insurmountable loss of reputation.
Cyber insurance coverage was made to cover just that—when government fines come your way, cyber insurance can help you handle them, and restore your reputation.
3. It’s Difficult to Come Back from a Cyber Attack
Many businesses struggle to come back after a cyber attack and will permanently shut down without proper protection in place. As they scramble to pay for new systems, hire specialized IT people, and investigate the breach itself, financial losses can be immense. With cyber insurance, businesses have the opportunity to bounce back by covering the cost of recovery.
Prioritize the Duo: General Liability and Cyber Insurance
It’s important to note that general liability insurance does not cover cyber crimes, so businesses need both general liability insurance and cyber insurance coverage to be fully prepared for any threat out there.
Cyber Insurance Coverage
This type of insurance is great for covering the cost of the following:
- Notifying victims of a data breach
- Restoring and recovering stolen data or systems
- Repairing any damage caused by the attack—hardware, software, or both
What Cyber Insurance Does Not Cover
While this insurance covers a great deal, it does not cover the following:
- Property damage from fire, flood, or any other physical loss
- Costs for preventative cybersecurity measures like antivirus protection and training of staff
- Loss of sales or potential revenue that could have been made had the incident not occurred
Ensure Your Business Is Cyber Insurance Secure with Simple Systems
Simple Systems is the IT provider that can keep your business compliant and lower cyber insurance premiums. We provide a proactive approach to security by creating frameworks for better security, data backup solutions, and up-to-date antivirus software.
Our goal is to make sure your business is secure from cyber threats at all times so you don’t have to worry about the immense costs of data breaches. Don’t wait until it’s too late—get in touch with Simple Systems today and get the peace of mind you deserve.