Accepting digital payments, storing digital customer information, and even simply using computers to operate your business all come with risks. In fact, according to the University of Maryland, cyber attacks occur every 39 seconds, and the computers in the university’s study were attacked an average of 2,244 times per day. With the increasing risk of cyber crime, cyber liability insurance is an essential investment for most businesses.
Cybersecurity insurance helps to cover the risks of using computers and technology while running your business. This coverage helps to protect your business from the potential cost of a data breach or other cybercrime. That cost can be staggering, and IBM reports that in 2023, the average cost of a data breach was $4.45 million.
Cyber coverage insurance covers numerous cyber-related risks, such as phishing attacks, malware, data breaches, stolen technological devices, and ransomware. Your coverage may include expenses like:
Some insurance companies provide the above coverages under a cyber liability insurance policy, while others may divide coverages into cyber liability insurance and a separate data breach insurance policy. You’ll need to read your policy to confirm what’s included and what’s excluded.
Additionally, your business will need other types of insurance for full coverage. For example, general liability insurance protects you from property damage or bodily injury claims, while professional liability insurance provides coverage in case of a claim of negligence or omissions in your professional services.
Since the potential for cyber attacks is so high, cyber risk insurance has become essential for many businesses. With insurance, your business will be better prepared to cope with the financial losses of an attack. Without insurance, a cyber attack could be financially devastating and potentially bankrupt your business.
Every type of business, including small brick-and-mortar businesses and global corporations, faces cyber risks. However, certain practices can increase your vulnerability to and potential liability in the event of a cyber attack. It’s essential to invest in cyber liability coverage if your business:
Cyber security insurance policies are available separately from your businessowners policy coverage. The cost of cyber insurance varies depending on your business size, your industry, and how you’re using technology. You can get free cyber insurance quotes today to start exploring your coverage options.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
