Cybersecurity Insurance: What Business Owners Should Know

Cybersecurity Insurance: What Business Owners Should Know

With cyber-attacks occurring more frequently and becoming more sophisticated every year, business owners must ensure the safety of one of their company’s most valuable assets: data.

Every type of business, small and big alike, faces cyber threats. While a cybersecurity plan is effective for mitigating cyber risks, companies should also be prepared with cyber liability insurance, also known as cybersecurity insurance. 

Cyber coverage is a crucial safeguard against the devastating financial consequences that come with a cyber attack. It’s not a question of if, but when — take note that 45% of companies in the United States have experienced a data breach, although this figure could be even higher due to the potential for still-undetected breaches.

Unsure of how these policies work, though? Our experts provide tips on what business owners should know about cybersecurity insurance. 

What does cybersecurity insurance cover? 

Whether it is costs associated with responding to a data breach, costs from notifying customers affected by a breach, lost business income interrupted by a cyber event, or even the price of replacing or restoring damaged data, cyber liability insurance handles it all.   

Before purchasing a cyber coverage plan from an insurance company, you will undergo a risk assessment. While we don’t offer insurance coverage at radius180, we can help you get underway with buying cyber liability insurance by conducting the required risk assessment to verify that your business is compliant.

Your business can typically customize its insurance solution based on your company’s level of risk, with different coverage options available to address all sorts of issues. 

These policies are designed to cover privacy, network, and data exposures, and the list of regulations and statutes regarding the protection and illegal use of cyber information is ever-growing, as are the notification requirements in the event a security breach occurs.

Such issues include forensic investigations, litigation expenses, regulatory defense expenses and fines, business interruptions, cyber extortion, and crisis management expenses. Your organization could lose money to malware attacks, phishing scams, ransomware demands, or even lose customers in light of a breach.

Why does my business need cybersecurity insurance? 

Today’s businesses are increasingly spending more and more to reduce their vulnerability to cyber attacks with company-wide cybersecurity policies and IT team practices, but there are few better ways to protect against the negative consequences of a breach than an insurance policy. Hackers have become bolder, and cyber attacks have gotten much more frequent in recent years. Cyber coverage offers businesses the protection they need for their valuable information.

If your company is ready to obtain cybersecurity insurance but need a risk assessment first, give us a call at (856) 282-1131 or contact us online to begin your risk assessment and kickstart the process of guaranteeing your valuable organization is safe from detrimental financial loss.

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