Making sure your business is insured correctly is one of the most important things you can do to protect your livelihood. This can get quite complex; there are many different policies available and which you opt for will depend entirely on the nature of your business. One such insurance is cyber liability insurance — does your business need it and what exactly does it cover?
Cyber liability insurance is cover created to protect digital threats, such as cyber hacks and malware. As such, it is only needed if you operate any part of your business digitally, which includes storing customer data. If you were hacked and customer information stolen, cyber liability insurance would cover the fall-out. If malware caused your business to temporarily cease operations, cyber liability insurance would cover any loss in profits. Damage to computer systems should also be covered, meaning you can replace data and systems that have been corrupted or damaged.
A cyber attack may affect your customers or clients, and can result in legal action. As such, cyber liability insurance is designed to cover any legal costs accrued, such as damages and settlements for GDPR breaches. It will also help you get your business back on track with reputation management and cover the cost of informing any affected third parties.
How much the insurance costs depends entirely on the cover you require — for example, a small digital business that holds little client data and personal records and would suffer only minimal revenue loss in the case of a shutdown will cost much less to cover than a larger operation, such as a healthcare or financial services setting, which are naturally more vulnerable to hacking attacks.
Cyber liability insurance is a valuable aspect of business cover, speak to one of our team if you want to discuss any aspects of business insurance.
