Just as fire insurance does not protect your business from a fire, cyber insurance will not keep your business safe from a cyberattack – only a strong cybersecurity plan can do that.
What cyber insurance can do, however, is get your business back on its feet as soon as possible in the aftermath of a cyberattack.
Cyber insurance acts swiftly during a cyberattack – whether it’s someone holding your data ransom or a data breach exposing your customers’ private information.
Cyber insurance acts swiftly during a cyberattack – whether it’s someone holding your data ransom or a data breach exposing your customers’ private information.
The number of businesses experiencing a cyber incident continues to increase annually, and businesses are more likely to be affected by a cyberattack than a physical theft or fire.
I often compare cyber insurance to fire insurance because both are designed to get you back in business as soon as possible.
Though we hear a lot about what happens to customers during a cyberattack – including ones in Northeast Wisconsin – we often don’t hear how the outage impacts the business side of things.
Businesses rely on technology to be faster, more organized and more efficient.
Think about when a computer goes down at work, and someone cannot get any work done.
A cyberattack is like that but across the entire organization.
In today’s connected world, businesses and organizations can be affected even if they were not the original target of an attack or outage.
Last month, an anti-virus update by a company named Crowdstrike affected Microsoft 365 users, which included major airlines and the accountant next door.
One can easily see how a lengthy outage can disrupt your business, leading to a financial loss.
Cyber insurance does more than help cover loss of income.
It can also help with:
- Data breach costs: Notifying customers, restoring systems, credit monitoring services
- Regulatory fines and penalties: Non-compliance with data protection laws
- Liability claims: Lawsuits from customers or partners
- Reputation management: Public relations, crisis communication
- Business interruption expenses: Lost income, extra operational costs
- Cyber extortion demands: Ransomware payments (where legal)
Just like having a skilled team ready to tackle a fire, cyber insurance provides a team of specialists to leap into action after a cyberattack.
Whether it’s managing customer communications or handling privacy concerns, these professionals can help you respond rapidly and effectively.
Beyond protecting businesses from the immediate impacts of a cyberattack, cyber insurance safeguards businesses from the repercussions of an attack.
It offers coverage if an organization is sued for causing damage to a third party due to a cyber incident.
Imagine having protection if an employee inadvertently spreads a malicious virus to another company or if your security measures are deemed insufficient in protecting customer data.
That’s the power of cyber insurance.
It transforms potential disasters into manageable situations with its comprehensive support and financial relief.
Cyber liability insurance is an investment in a business’s future, acting as a safety net to protect against financial ruin in the event of a digital disaster while providing peace of mind by ensuring businesses have an ally ready to help when needed most.
