Do you really need cyber liability insurance ? You might as well ask yourself if you really need your business. No matter what you do, these days all businesses are cyber businesses. You might not sell software or information technology services, but you absolutely sell your product through your website or run your business marketing through social media platforms. The internet has opened up billions of possibilities for entrepreneurs, small businesses, and giant firms- but these opportunities are dependent on technology to run, and that dependency means there are risks which can threaten everything your business does.
Having no cyber liability insurance is bad news
What would happen if your website crashed? What would happen if a hacker stole all of your customers’ credit card numbers? What if your company’s social media accounts got hijacked? The consequences are more than just lost business and refunds; it can also be legal fees and settlements, hiring new technical staff to solve the problems- even just the cost of notify your customers that a data breach occurred can be an unexpected expense. Are you still thinking cyber liability insurance is not necessary?
Take a deep breath before reading the next bit: the average cost of a data breach is currently estimated at $3.8 million dollars and rising. Does your company have $3.8 million dollars in liquid assets to just pay for this out of pocket should you need to? What if your data breach got unlucky with that 50/50 coin toss, and your costs were even more than $3.8 million dollars?
“This will never happen to my company” -every company that has ever had a data breach or catastrophic data loss
Don’t be that business. Sure, you’ve tried to be careful and done the basics like making sure your website is https certified, and that your customers’ account numbers are non-sequential. The issue at hand though is that accidents happen on accident, and the malicious attackers are trying to defeat your security.
You cannot count on never having a serious incident relating to your cyber activities. Your business is wonderful: it’s making your customers happy, and helping you and all your employees provide for themselves. Some of the other people reading this article might even be some of your customers. We’re all counting on you to be a responsible business leader and to be prepared for the worst.
The good news: we’ve got you covered (literally)
Fortunately cyber liability insurance is very affordable, and covers exactly all these kinds of situations your business might encounter. This type of insurance has been around for more than a decade, and can really provide you the peace of mind you need when thinking about your business.
Of course you should do everything you can to improve your cyber architecture, but security professionals also know you should transfer as much risk as possible.
Hotwire Insurance Services is an insurance broker, which means we can find any kind of insurance that you need. As you work with us, we want you to ask as many questions as possible so we can find you a policy that is truly tailored to your enterprise.
Beyond the questions you’d want to ask with any insurance policy, here are some you might not have thought of: are malicious acts by employees included in the cyber liability insurance policy? Is information that can’t or shouldn’t be encrypted covered? What about if a data breach is discovered years after it actually occurred?
By being proactive in seeking cyber liability insurance coverage, you’ll save yourself money and find an arrangement that does exactly what you need it to.
Hotwire Insurance Services, a full-service independent agency, works for you and not insurance companies and does not charge broker’s fee. They address all your needs and provide custom insurance solutions. Hotwire Insurance Services local agents can answer all your insurance requests.