Technological evolution has not only changed the way businesses operate but has also transformed the value and potential threats to a business. A huge amount of information is stored and transferred over the Internet. Almost all the transactions and other business activities are performed through electronic media. This environment has made data and information the most valuable asset and threats to cyber securities the biggest concern. With all the information of your clients floating over the Internet, your cyber liability is of paramount concern. Traditional insurance plans do provide some support but do not address cyber threats. You must insure your business for cyber liability to shield yourself from damage on the electronic media and get coverage for the cost incurred on any loss to it. A cyber liability insurance guard you against the risks associated with the exposure of the content and data you put up on your website. Here are a few ways the cyber liability insurance can help your business in the time of need.
- Bridging the gap between present needs and conventional coverage
Although traditional insurance plans are improving and trying to accommodate digital needs, they still stick to insuring the tangible properties. For instance, a traditional policy would assist you if any damage occurs to the server storing your data but will not respond to any breach or data theft. Cyber liability insurance bridges this gap and is designed to address threats to data. It would provide for the cost to respond to the attack and also assist in penalties.
- Provide for data breaches
Whether you are operating online or not, in the present day and age, you at least store your client’s information on servers. Any breach and theft of this data would incur you the cost to fix the security post-attack, information theft protection to the affected person, and cost of legal action. Cyber liability insurance provides you with cover for all of that.
- Protect intellectual property rights
Having an online presence is a must, be it through a website, blog, social media, or any other form. As everything is published on a common public medium, you are exposed to the threat from other publishers. You may face several risks including copyright infringement, trademark infringement, etc.
- Cover for third party system damage
This is a very indirect threat wherein someone else is affected due to the action/product of your company. For instance, someone claims that an email from your company’s server has damaged his/her system or the software you market has failed and cost a huge amount. Such cases are also often covered within cyber liability insurance.
- Cover for cyber extortion
Hackers are the biggest threat to any online business. One of the common types of attacks is cyber extortion. The hackers hack your servers, networks, or website and deny to release the access until a said amount is paid to them. This kind of cyber attack is one of the most expensive threats. It includes the cost to be paid to gain access to your website, server, or network, reinstates the damaged security, temporary loss of revenue due to shut down, and sometimes loss of reputation also. Cyber liability will assist you by sharing the costs in the crisis.