If you ever needed the motivation to start taking data protection seriously, all you need is this number: $4.35 million. That is how much the average company has to be prepared to spend to clean up after a data breach. From legal fees to a damaged reputation and lost customers, the aftermath of a data breach can be devastating.
As businesses continue to become more digitally dependent, it’s not just important but essential to have some sort of protection in place that will help cover any costs associated with a data breach. Cyber insurance coverage is an important option for your business.
Cyber Insurance: What Is It?
Cyber insurance is a type of coverage specifically designed to protect businesses from the financial losses associated with a data breach or other cyber attack. Depending on the policy, it may cover costs related to stolen data, IT forensic investigations, legal fees, and even public relations campaigns to help manage your reputation recovery.
Why Is Cyber Insurance Coverage Important?
Data breaches can have serious consequences for businesses of any size, including potential lawsuits and financial losses. Cyber insurance coverage offers a layer of protection by transferring the risk associated with a data breach to an insurance company in exchange for premium payments.
As technology continues to evolve, cybersecurity threats become even more prevalent and sophisticated. Having cyber insurance in place is becoming increasingly important as a way to protect your business against costly breaches.
What Does Cyber Insurance Cover?
Cyber insurance coverage will vary depending on the policy you decide on. Generally, most policies cover first and third-party costs associated with a breach, including:
- Liability coverage for data breaches caused by third parties or your employees
- Business interruption losses due to service disruptions from a breach or attack
- Notification costs related to informing customers of a breach
- IT forensic investigations if needed following an attack
- Public relations assistance and crisis management strategies to protect your brand’s reputation after a breach
- Legal defense in the event of a lawsuit resulting from a breach
How Do I Get Cyber Insurance?
Getting cyber insurance for your business is fairly straightforward. The process will include the following steps:
- Assess the level of protection you need based on factors like how much data your business holds and its potential risk of exposure
- Speak to an insurance professional who can help you select the right policy and coverage levels that best meet your needs
- Fill out any paperwork or applications with detailed information about your company, such as annual revenues, number of customers/employees, etc.
- Provide details on any existing security measures implemented at your organization
- Review the policy before signing it to ensure it’s meeting all of your expectations
Don’t Do Cyber Insurance Alone!
At Bethany Insurance, we specialize in cyber insurance policies that can provide the protection your business needs. From choosing the right policy to understanding what’s covered, our experienced team of insurance agents can help you get the coverage you need at a competitive price.
Contact us today to learn more and get started with your cyber insurance policy!
