Cyber Liability Insurance Importance Against Data Breaches

Technological advancements can play a crucial role in the ever-evolving business world. As your company attempts to find new innovations and efficiencies, digital solutions may often emerge as invaluable assets. However, these exciting implementations may also bear significant risk levels, as the threat of cybercriminals and data breaches must be taken seriously. Consider how cyber liability insurance may be essential to your business’s ongoing financial security.

What Is Cyber Liability Insurance? 

Also known as cyber insurance and cybersecurity insurance, this type of coverage can make all the difference in the aftermath of a data breach or other cyber incident. In a similar vein as many types of insurance, these policies establish a contractual agreement between you and your insurance carrier and may help you access financial aid to manage the aftermath of cyberattacks or other losses.

Why Is Cyber Coverage Important?

Cyber incidents can devastate your business’s financial interests and reputation. Whether arising from malware infections, phishing scams or other forms of cyberattack, data breaches may incur significant direct and indirect costs, making an adequate cyber liability insurance policy essential. Most policies can assist with the following expenses and losses:

• Incident response costs, such as notifying affected parties and investigating the cause

• Business interruption losses, such as recouping lost revenue and training employees to use new technology

• Cyberextortion payments, such as if a cybercriminal uses ransomware to hold your business’s data hostage

• Noncompliance fines, such as those issued by regulatory agencies for lack of adequate cybersecurity measures

• Legal expenses, such as attorney fees, settlements and judgments arising from lawsuits

Who Needs Cyber Liability Insurance?

As online solutions and digital technology become more prevalent in workplaces of all sizes and across all sectors, cyber liability insurance has become essential to many companies’ risk management efforts. Whereas cybercriminals may have previously focused primarily on larger corporations, small- and medium-sized companies may now be just as attractive of targets, necessitating appropriate coverage.

We’re Here to Help

Contact Tom Reyes Insurance Agency in San Antonio, Texas, today to learn more or get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.