There are dozens of different types of business insurance policies out there. While it is great to have options when it comes to protecting your business, all these choices can make it tough to determine what sort of coverage you actually need. So, do you really need Cyber Liability Insurance?
Virtually every business in operation today needs this type of coverage. According to 2021 data, businesses faced an average of 270 attacks each during that year alone. These attacks ranged from unauthorized access to business data to penetrating applications, devices, and networks.
Although most of these attacks caused minimal business disruptions, some were catastrophic. More than a few of them even caused organizations to go out of business due to the financial repercussions they caused.
As a business owner, it is critical to understand what cyber liability insurance is and, more importantly, why you need it.
What Is Cyber Liability Insurance?
Cyber liability insurance is a policy designed to protect your business from expenses related to a data breach. Such a policy will cover post-attack recovery expenses, such as bringing in a third-party information technology firm. Depending on the scope of your policy, it may also cover some of the profit losses you incur due to the attack.
Cyber liability insurance covers all types of cyberattacks. In addition to data breaches, it can cover the expenses associated with malware, ransomware, and distributed denial of service (DDoS) attacks.
While these other acts may or may not result in a data breach, they will negatively impact your ability to conduct business. That is why acquiring a comprehensive cyber liability policy is crucial to ensure you can recover from the attacks.
Is Cyber Liability Insurance Really Necessary?
Yes, you absolutely need cyber liability insurance. According to Business.com, a data breach can cost a small business anywhere from $120,000 to $1.24 million. Data breaches can cost larger organizations far more.
Ask yourself, “Can my business withstand an unexpected expense totaling $120,000 or more?” If not, then you must get a cyber liability insurance policy. You should also consider partnering with a third-party managed services provider that specializes in data security. Such a partner can help you protect your business from a data breach.
If your provider does not allow you to add cyber liability coverage to your general liability commercial insurance, Simpay Insurance Solutions aims to provide clients with a 360° Total Business Solution. Based in Trevose, PA, we offer a comprehensive lineup of coverages as part of our general liability policies to protect and grow businesses across North America.
How Can I Get Coverage?
When it comes to protecting your business, Simpay has you covered. You can obtain a standalone cyber liability policy from as part of our standard Liability insurance offering.
If you prefer a simple solution, consider adding cyber liability coverage to your existing general liability commercial insurance policy with Simpay. This allows you to manage both coverages from a single policy. Bundling may help you save money as well.
No business is immune to cyber crimes and their impact, which means that every organization is at risk. With proper coverage, you’ll not only protect your business from devastating damage but will also protect the trust of your customers.
