Who Needs Cybersecurity Insurance?
As a company, you may constantly need to find new ways to evolve and innovate, while also seeking opportunities to streamline existing functions. Fortunately, technological advancements, such as various software, applications, programs and online solutions can provide a treasure trove of possibilities in both regards. However, implementing these instruments and tools in your workplace can create or exacerbate risks and exposures, particularly those related to cybersecurity.
Given the essential nature of technology in the modern workplace and when considering the potential consequences of data breaches and other cyber incidents, responsible organizations should consider cybersecurity a critical loss control measure.
What Is Cybersecurity Insurance?
Also known as cyber liability insurance, this coverage can provide crucial financial protection for policyholders as they navigate the risky landscape of storing, managing and transmitting sensitive data and private information. Cybersecurity insurance allows your organization to customize appropriate coverage, which can offer access to essential funds and resources after cyber incidents that might otherwise incur significant out-of-pocket losses and expenses.
Why Do I Need Cybersecurity Insurance?
In the modern digital era, almost all organizations can benefit significantly from the protective features of cyber liability coverage. Although particularly robust policies may be more necessary for certain types of businesses, such as IT professionals, financial service providers, retailers and health care providers, any company that works with potentially sensitive data (e.g., banking information, social security numbers and credit cards) should highly prioritize adequate insurance.
In recent years, cybercriminals have expanded their target selection to include more small- and medium-sized enterprises, meaning that even small businesses should not assume they are not at risk.
Cyber incidents can incur many far-reaching financial consequences. Fortunately, cybersecurity liability insurance coverage can often help limit out-of-pocket losses and expenses by helping to pay for the following:
- Incident response costs, including notifying affected parties and investigation expenses
- Hiring additional services, such as IT contractors and credit monitoring firms
- Business interruption losses, including lost revenue and equipment rental costs
- Cyberextortion payments, such as if a perpetrator uses ransomware to hold data hostage
- Legal expenses arising from lawsuits, including attorney fees, settlements and court-ordered judgments
- Noncompliance fines issued by regulatory bodies
Get the Right Coverage
At First Priority Insurance Agency, our team is committed to helping businesses, families and individuals identify their coverage needs and secure ideal policies. We will draw on our extensive knowledge and experience to help you understand various cybersecurity insurance options available, such as data breach liability insurance and technology E&O insurance, and ensure you have the financial security and peace of mind provided by optimal coverage. Visit our website or call 678-369-6200 to learn more or get a quote for a suitable cyber insurance policy.
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.