Is Cyber Liability Insurance Necessary For Small Businesses?
Cyber-attacks are not a new phenomenon. Yet, there are many misconceptions people have about them. And one of the widely spread beliefs that some people assume is that hackers solely target large corporations that make millions of dollars in profits, but this is incorrect. Admittedly, big companies are at a higher threat of cyber-attacks. Nonetheless, this does not mean that their smaller counterparts are exempt.
If anything, since small businesses do not have tremendous budgets as large corporations do, the small businesses tend to be at a higher threat of cybercrimes due to the lack of adequate cyber protection. Fortunately, you can easily limit your risk by enlisting cyber liability insurance services. The following article outlines the top reasons why cyber liability insurance is necessary for small businesses.
Cyber liability insurance will compensate your small business for downtime experienced
If you are under the belief that there are straightforward processes to contend with cyber-attacks, you would be grossly mistaken. The reality is that cyber-attacks are not addressed with a one size fits all approach since they vary in scope, as well as intent. For example, while some hackers could employ phishing techniques to collect the personal data of your customers, other hackers may simply want to put your business offline.
With that in mind, it is always best to have cyber liability insurance, so that you are protected irrespective of the intent of the cyber-attack. If your small business is hacked and it disrupts your operations to the point that you lose income, cyber liability insurance can compensate your business. Moreover, it is worth noting that if your small business experiences downtime due to damaged electronic hardware, for example, computer damage stemming from the cyber-attack, the cyber liability insurance can replace this equipment or you.
Cyber liability insurance will compensate your small business for corrupted data
In the current digital climate, data is highly valuable. Hence, it is unsurprising that businesses will go to great lengths to erect sensitive information about the inner workings of their company, customer information, and more so that it does not make its way into the wrong hands. When your small business becomes a victim of a cybercrime, it can be incredibly expensive to restore all the data that was corrupted or lost during the breach.
Depending on the scope of your policy, cyber liability insurance can compensate you for the resources utilized to recoup these corrupted files. Furthermore, if your customers are adversely affected by the breach, for instance, if the hackers steal their identities, cyber liability insurance can compensate your clients for potential damages caused.