Cyberattacks continue to rise from one year to the next. As a result, more businesses than ever are aware of the potential dangers. Cyber insurance cannot protect your business from an attack or breach, but it can provide essential financial protection that can help you navigate the aftermath of those threats.
1. Financial Losses Due to Data Breaches
The cost of cyberattacks can prove utterly devastating for many businesses. You may end up with significant costs as a hacker breaks into your system and steals essential data, whether that means access to banking information or other mission-critical data that could prevent your business from being fully operational. Cyber insurance can cover those immediate financial losses, protecting your business against the financial devastation a hacker can leave in their wake.
2. Downtime
Depending on your business and when and how a cyberattack occurs, downtime can be utterly devastating. The average cost of downtime can be thousands of dollars per minute, which means that the longer your business stays down, the more expensive it can turn. Unfortunately, a cyberattack can mean hours of downtime, especially if you need to restore a system frozen by ransomware or do not have adequate backups. Cyber insurance can help pay for the cost of that downtime, allowing you to take the necessary time to get your business up and running again without unnecessary stress or strain.
3. Customer Costs
Following a cyberattack, you may have to make restitution to your customers for the losses they have faced because of a breach in your security. Many companies, for example, will end up paying for credit monitoring services following a breach, which can prove very expensive. Others may have to take other steps to provide a resolution and compensation to customers who were negatively impacted by the breach. Cyber insurance can help cover some of those costs, making it less expensive to restore customer goodwill and allowing you to focus on getting your business back to normal.
4. Liability Costs
Depending on the type of information breached, including whether you have private customer information in your systems, you may end up facing liability costs following a cyberattack. Customers have the right to seek compensation from your business when they face unexpected costs because you did not adequately protect your data. They may also choose to file a claim for privacy breaches, including the loss of private healthcare information. Those costs can add up substantially for your business in the aftermath of a cyberattack. Cyber insurance, however, can make it easier to cover those costs and prevent your business from suffering negative financial impact due to the breach.
Cyber Insurance: Key for Protecting Your Business
Due to the rising impact of cyber threats, it is increasingly crucial for businesses to have the right protections in place–not just security measures, but insurance to help protect you when a breach does occur. By choosing the right insurance coverage, you can ensure that your business can weather the storms that come its way.