Personal data is a hot commodity these days, which is why every business that collects people’s data needs cyber security insurance.
Every day we are learning of new data breaches at some well-known companies, proving that the threats are out there, sophisticated, and can affect even a small business.
Even if a company is already going to great lengths to keep data secure, a cyber and privacy insurance policy from a knowledgeable cybersecurity insurance agency is a must for protecting the entire business.
How Significant Is The Risk?
With cybersecurity threats becoming more significant as time passes, cyber and privacy insurance firms find that the risk posed to even smaller businesses grows with it.
Breaches suffered by larger companies are paving the way for breaches within smaller ones as that data is ending up in the hands of data miners who use all that information to wreak havoc on peoples social and personal accounts.
With illegal data harvesting becoming so prevalent, cybersecurity insurance agencies stress that just because a direct breach has not happened yet to a smaller company does not mean it won’t or that individual account holders details are not at risk.
As users themselves scramble to protect personal data on their many accounts all over the internet, small businesses should be taking similar steps to protect their own client and business data in the wake of ever-growing cybersecurity threats.
What Happens If Your Business Is Targeted?
Whether a business is directly targeted or clients stolen data is used to access their accounts, cyber security insurance companies warn that a business could be liable.
This raises the concern for all businesses that their online security is up to par and protective against the latest threats and that companies are confident in the security of other companies they work with.
Depending on how it happens, data breaches could result in substantial fines by the FTC, lawsuits, liability for damages caused by those breaches, business interruption, loss of business reputation, and much more.
Appropriate cyber and privacy insurance is essential for all businesses that collect any type of customer data considering how widespread the threat of a breach is today and the severity of the potential consequences.
How Can Cyber and Privacy Insurance Help?
Although the main purpose of cyber security insurance is to protect a business if a data breach happens, the benefits are greater than just that.
Like all insurance agencies, the prime goal of cybersecurity insurance agencies is to help clients prevent a breach in the first place.
Agencies will first assess the threat risk and make sure the appropriate protection is in place, from cyber threat protection to carrying the right coverage on an appropriate insurance policy.
Should a breach occur, a well-written policy will cover things like legal fees, fines, damages to the business and its clients, forensic investigations, infrastructure losses, customer service response costs, brand reputation management, and more.
Protect Businesses Against Data Threats
Cyber threats are increasing every day, striking businesses big and small and without a good cyber and privacy insurance policy, any business could be destroyed by a data breach.
Fortunately, a business can be protected with affordable insurance from a cybersecurity insurance agency that will assess your level of risk and then formulate appropriate coverage.
Protect clients and your company with cyber security insurance that will help avoid a breach as well as provide coverage in case a data breach is experienced!
