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5 Good Reasons You Should Carry Cyber Liability Insurance
Posted on: December 29, 2015 by Newmark Insurance
In the event your firm became attacked by a cyber-attacker, would your assets and customer information be secured? More so than ever before, this threat is more and more eminent and threatens to bankrupt companies who are not financially capable of recovering. Not only do these types of breaches threaten your company’s security, but they also disrupt business operations, causing even more loss. In order to protect your business, here are five top reasons to carry Cyber Liability Insurance.
You Can Afford it
Contrary to popular belief, this coverage is actually feasible to obtain. Ethan Miller, partner at Hogan Lovells law firm, states “I’ve seen policies with premiums as low as $2,000 a year, though it can go up from there.” The policies range in price depending on what type of coverage you need and how much. However, these costs are much less than the out of pocket costs it would require to recover from a breach without insurance.
It Covers More Than You Think
According to Inc., many policies offer “first party” coverage-that is, they will pay you for things like business interruption, the cost of notifying customers of a breach, and even the expense of hiring a public relations firm to repair any damage done to your image as a result of a cyber-attack. In fact, any “first party” coverage that relates to the breach will likely be covered by this policy.
You are Responsible for Data Hosting
Even if your website is hosted by a cloud, you are still liable for protecting this pertinent information. This policy will provide protection for you in the event the cloud is breached in any way.
Lack of Risk Management
Depending on the size of the firm, risk management teams are often absent. While large corporations are equipped with full teams dedicated to analyzing risk exposures of the company, smaller firms often go without. With this coverage, your network will be secured and risks can be analyzed by your insurance provider.
A General Policy Isn’t Enough
General liability policies traditionally cover losses due to physical injury or harm. However, network security is excluded from this coverage. Thus, a cyber-insurance policy can help mitigate unforeseen risks and bridge the gap between your property and your network. In addition, add any company laptops, tablets, and mobile devices into this policy to cover all of your bases.
At NewMark Insurance Services, we understand the risks associated with network security breaches. These perils, among others, can be reduced with our comprehensive cyber liability policies that are specifically crafted to meet your needs. For more information, contact our specialists today at (855) 777-6549.