As businesses become more dependent on technology and the internet, they face an increased risk of possible cybercrime. Cyber Liability Insurance, also known as Cyber Insurance, is a type of insurance that covers losses caused by security breaches or attacks that involve computer systems and data.
It’s important to remember that in today’s business world, where files are created, stored, and shared digitally, Cyber Insurance is a must-have. One single cyberattack can devastate a company’s finances, reputation, and operations. The 2022 Official Cybercrime Report predicts cybercrime damage costs to reach $10.5 trillion by 2025.
It’s now time to learn more about Cyber Insurance and 4 reasons your company can benefit from it.
Reason 1: General business liability insurance is not enough
General business liability insurance tends to cover costs associated with third-party bodily injury, property damage, and advertising injury claims. This insurance doesn’t cover any losses related to digital incidents such as data breaches, cyberattacks, and other digital-related incidents.
Reason 2: It covers your cybercrime expenses
In the event of a breach or cyberattack, businesses may face significant expenses, including forensic investigations, legal fees, notification costs, and public relations expenses. Cyber Insurance can cover most of these costs and provide businesses with the financial resources they need to recover quickly in the event of cybercrime.
Reason 3: Cyber liability insurance is becoming a requirement in most industries
Many industries now require Cyber Insurance as a condition of doing business. For example, healthcare providers, financial institutions, and government contractors are often required to have cyber insurance as part of their regulatory compliance obligations. Additionally, many clients and partners may even require businesses to have Cyber Insurance before doing business with them.
Reason 4: It supports your overall cybersecurity strategy
Cyber Insurance is not a substitute for a robust cybersecurity strategy, but it can complement it. In addition to this, a reliable cybersecurity strategy should include training, software and hardware updates, and a solution provider.
Remember, Cyber Insurance primary purpose is to protect your business financially after a cyberattack or data breach.
What else should I know about Cyber Insurance?
What it doesn’t cover
Despite the benefits of Cyber Insurance, there are some items not typically covered by this insurance, which include:
- Social engineering (some policies may offer this as an add-on)
- Property loss or damage
- Personal injury
- Criminal activities such as robbery and internal theft
- Business interruption caused by systems managed or controlled by a third party
It’s always important to carefully review your unique policy to understand what is and is not covered.
How to qualify
To typically qualify for Cyber Insurance, businesses must meet a set of requirements. Some requirements include the following:
- Implementation of multi-factor authentication (MFA)
- Some proof your organization takes every precaution to prevent unauthorized or illegal network access
- Regular educational training
Shield Your Business from Cyber Threats
Cyber Insurance can be crucial to a business’s risk management strategy. By working with a trusted solution provider with expertise in cybersecurity, like GB Tech, businesses can rest assured that they have the expertise they need to protect themselves from the financial fallout of cybercrime or breach.
GB Tech is here to assist your business in meeting the requirements for Cyber Insurance. Furthermore, our team will collaborate with your company’s leadership to review your current policy, ensuring a comprehensive understanding of what is necessary. Contact us today to discover how we can help safeguard your business in this constantly evolving landscape.