In today’s digital age, businesses of all sizes are increasingly reliant on technology. And while this dependence can bring many advantages, it also exposes organisations to new risks—including the risk of a cyber-attack. A single data breach can cost a company millions of dollars in damages, so it’s important for businesses to have adequate cyber liability insurance in place. But what exactly does this type of coverage provide? Let’s take a closer look.
What is Cyber Liability Insurance?
Cyber liability insurance is a type of insurance that protects businesses from the financial damages that can result from a data breach. This coverage can help businesses cover the costs of things like customer notification, credit monitoring, and legal fees. In some cases, it may also cover the cost of business interruption.
Why Do You Need Cyber Liability Insurance?
There are a number of reasons why your business might need cyber liability insurance. For starters, the likelihood of suffering a data breach is on the rise. In fact, according to a 2019 study by Ponemon Institute, the average cost of a data breach has increased by 6% over the past five years, with the total cost now averaging $3.92 million per incident.
What’s more, even if your business itself is not directly impacted by a data breach, you could still be held liable if your customers’ personal information is compromised. And if your business doesn’t have adequate coverage in place, you could be on the hook for all related expenses—which could quickly bankrupt your organisation.
No business is immune to the risk of a cyber-attack. And while no amount of insurance can completely protect your business from the financial devastation that can result from such an event, having adequate coverage in place can help mitigate some of the damage. So, if you don’t already have cyber liability insurance, now is the time to get it, it could very well be the best decision you ever make for your business.