As long as there have been businesses, there have been insurances. In today’s market being insured is an absolute essential, but the degree of coverage and type of insurance can change depending on your field. But now that cybercrime and digital theft are becoming such a prevalent problem, a new type of insurance has swaggered onto the block to help out smaller businesses. Cyber liability (or cyber security) insurance aims to combat the potentially devastating effects of a cyber-attack.
Cyber insurance is a type of insurance specifically designed to cover consumers of technology services of products. Just like any other type of insurance, cyber liability or security insurance is all about making sure you’re not out of pocket if your company is breached and data stolen. It’s like public liability insurance, but for your digital data. Most cyber insurances will cover a business’ lability for a data breach in which the companies’ customer’s personal information (like bank account details, addresses or card numbers) are exposed or stolen by a hacker or other criminal who has gained access via electronic means. The penalties and damages from such an attack can be enormous and potentially financially crippling, which is why more and more businesses are opting to pay a premium for insurance instead. If you don’t choose to take out cyber insurance, you are liable for any damages, law suit pay-outs and other financial issues that arise form a cyber-attack. Long story short, if you work with data, it’s a must have insurance. But you do need to be careful about which type you buy and make sure you read the fine print.
What Isn’t Included? We’re always quick to ask what is covered by our insurance, but often we don’t find out about what isn’t covered until it’s too late. Before you sign any contracts, make sure you have found out what the loopholes are in the cover and what it doesn’t cover, so you can be prepared.
For more information about what you may need from cyber insurance, or whether it’s worth it, you can always get in touch for a consultation or just a friendly chat about the cyber world.