As technology becomes more sophisticated, cybercriminals come up with newer and more sophisticated attacks. In fact, a cyber attack happens every twenty seconds today. This means that there is a greater threat of experiencing a cyber attack than there is of being involved in a fire or a flood. You can get cyber insurance to protect you against data breaches, network security breaches, loss of privacy, and theft of intellectual property. Take a look at the top six reasons to get cyber insurance.
1. Cybercrimes Are Very Common
Every business needs to have cybersecurity to protect its data. In fact, the odds of having a cyber attack are close to 75%. Cybercriminals can target your computers, servers, networks, and point of sale systems. They can steal customer data and other sensitive information that can compromise your business. Cyber insurance protects you by covering financial losses and costs for remediation, investigation, crisis communication, legal services, refunds to customers, and more. Most businesses don’t budget for a cyber attack but having insurance will cover you if one does happen.
2. Claims from Cyber Crimes Are Expensive
The most common type of cyberattack is ransomware, where criminals use malware to hold your data hostage unless you pay a ransom. This usually costs more than $50,000 and can stretch into the hundreds of thousands. You will also have legal fees, accounting, and IT costs, and then you have to handle reputation management. You will also suffer an interruption in business while your data is being held for ransom. Having insurance helps you get through this process without paying hundreds of thousands out of pocket.
3. Cyber Criminals Target All Types of Business
Some people mistakenly think that cybercriminals only target large corporations. In fact, they often target small businesses because they are easier to breach. Big corporations have the resources for more advanced forms of cyber security, while small businesses often have fewer protections in place. If you have a small business and you don’t have an extensive IT department, you are at risk. Cyber insurance will ensure that a major attack doesn’t put you out of business.
4. Cyber Insurance Is Affordable
When you compare the benefits you receive with the risk, cyber insurance is affordable. You get extensive coverage, including protections from lost income when you suffer a breach, legal consultation to form a response program, post-event protection including monitoring and notification services, and reputation management resources. The insurance is comprehensive and offers a great deal of protection for a low price.
5. Cyber Criminals Steal All Kinds of Data
Many people know that cyber criminals target financial data, but they are actually after all types of data. They try to steal and access payment data, protected health information, critical files, personally identifiable information, and more. Although cybercriminals look for credit card information, bank information, and addresses, they also steal other data. On the black market, identities have value, so hackers steal them to sell them. They also steal access to Skype accounts, verified PayPal and other accounts, or medical information.
6. It Helps with Unintentional Leaks
Although cyber insurance protects you in cases where a cybercriminal attacks your systems, it also covers you for unintentional leaks. An employee may accidentally leak personal data and records of customers, which is a liability. Having insurance ensures that you can cover any claims without losing your business. Data has become incredibly valuable, and there is a lot of it collected by businesses today. The best way to protect yourself in the event of data theft from your business is cyber insurance.