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Why Cyber Insurance Is Important for Businesses

cyber insurance

If you’re one of the 30+ million businesses operating within the United States, chances are you utilize some type of technology in your day-to-day operations. Whether we like it or not, technology, and more specifically, the internet of things (IoT) have become so ingrained in the way we work that we can’t go a day without using it. But with technology, comes cyber risk. In order to keep your business protected from the “negative” side of technology, it’s important to have cyber insurance. 

Image via iii.org

Why Cyber Insurance?

Cyber insurance helps your business respond in the event of a cyberattack or data breach. These cyber attacks can come in many different forms, so knowing your unique cyber liabilities is key to preventing hackers from penetrating your systems, and identifying where you need coverage.

“Insurance coverage is an added layer of protection which enables the business to call upon the insurer in their moment of need”

Brian Gill, Gillware Data Recovery

What Does Cyber Insurance Cover?

Cyber insurance can vary depending on which provider you work with. As is with any type of coverage, the amount you need in order to fully protect your business and cover any blindspots depends on your level of risk and liability. Most providers typically offer first-party coverage (pays for immediate expenses incurred after a cyberattack) and third-party coverage (helps defend company against lawsuits and legal claims). 

How Much Insurance Do I Need?

When deciding to add cyber insurance to your current policies, be sure to discuss with your provider how to adequately meet your business and financial needs. However, these questions are a good place to start:

  • How much would it cost to replace any affected hardware or software?
  • How big of a part does technology play in my day-to-day operations?
  • How long would I be out of business should I fall victim to a cyberattack?

Have questions about cyber insurance? We’d love to help! Just reach out to us here and we’ll be in touch right away.