Cyber Liability Insurance: Why Your Small Business Needs It
When you hear the term “cyber liability insurance” you may think of huge corporations and massive data breaches. The average small business would not be the first thing that comes to mind, but many small business owners can greatly benefit from this type of liability coverage. 1 in 2 small businesses have suffered some sort of cyber attack.
The cyber landscape is constantly changing, so your readiness as a business must adapt too. One of the best investments you can make as a business owner is to invest in cyber security education.
If your business is online or stores any data online, it is important to have a cyber liability policy. As a small business owner, you are at risk if you have 2 employees or 2,000 employees. Most businesses do not consider getting a cyber liability policy until they have a breach of information or experience suspicious activity. By that time, the damage may have already been done.
There are many types of cyber attacks a business owner could be held liable for, so education about different types of attacks can save your business. Ransomware is one type, which holds your digital information or website hostage until you comply with their commands. One of the most common cyber crimes that many people are aware of is identity theft. Criminals use your business’s stolen information to open new credit accounts and leave you with the outstanding bill. Even intellectual property vital to your business could be stolen virtually and sold on the black market. Spam could also lead to phishing your personal information, so be careful when clicking on unknown links.
A cyber liability insurance policy may cover your business in the event of an attack, data breach or extortion attempt, and it can help you recover losses such as loss of income, damage to reputation, and attorney fees.