Cyber insurance is a relatively new form of insurance designed to protect businesses from the risks associated with cyber attacks and data breaches.
Cyber attacks against businesses have become increasingly common, with many companies being breached at least once per year. In fact, it’s estimated that half of all small businesses will be victims of cyber crime in the next five years.
Cyber insurance can help your business protect itself against the financial consequences of a cyber attack or data breach by covering expenses such as:
- Data restoration and recovery costs
- Costs associated with notification letters to customers and other parties who may be affected by a security breach
- Legal fees incurred if you need to pursue legal action against the person or group responsible for an attack
- Third-party expenses related to lost business revenue, such as fees paid to banks and credit card companies if they need to issue new cards due to a data breach
- Loss of business revenue
- Costs associated with hiring outside consultants to help you deal with a cyber attack or data breach
Who Needs Cyber Insurance?
If your company sells products or services online, you are at a higher risk of being hacked or having your data compromised. This is why cyber insurance is so important for businesses. Even if you don’t sell anything online yet, it’s best to get ahead of the game and protect yourself in case you decide to do so in the future.
You should also consider cyber insurance if you store sensitive data, such as credit card information or employee records. If you are a larger company with operations in multiple states or across borders, you will need to make sure that your coverage extends past state lines. There are also different types of coverage available based on how much risk your company is willing to take on (e.g., excess versus umbrella coverage).
How To Find The Best Cyber Insurance Company?
There are a number of ways to find the top cyber insurance company. The first step is to figure out what kind of coverage you need. Are there any gaps in your current policy that could leave you vulnerable? Once you’ve determined exactly what coverage options are available, it’s time to start comparing companies based on price, reputation, and customer satisfaction ratings. You should also make sure that each company offers the same type of coverage before making a final decision.