4 Main Reasons of Cyber Insurance
Protect your business and you from a Reputation Loss: Third-party data is valuable to your business, but it belongs to your suppliers and customers. Guess who pays if you lose it? Most commercial contracts and non-disclosure agreements address the security of third-party data that could trigger claims if your business experiences a data breach. Consumers, too, are frequently filing lawsuits for damages when a business loses their sensitive data.
Protect your business from financial loss: It’s expensive and time consuming to comply with breach notification laws. These laws typically require businesses that lose personal data to provide written notification to all potentially victims. Cyber policies cover the costs associated with issuing a breach notice.
Protect you from undue stress: It’s quite stressful when unknown lawsuit and legal notice comes to your door. You have to protect your customers and your business.
4. Protect data from cyberattack: Your electronic system downtime due to a cyber attack won’t be covered by standard business interruption insurance. If a ransomware attack, computer virus or untrustworthy employee shuts your systems down, a traditional business interruption policy won’t cover your losses. Cyber insurance offers coverage for lost profits associated with a cyber-related systems outage. Portable devices increases the risk of data loss or theft. A laptop or tablet left on a plane, a cell phone stolen in a purse snatching, or a misplaced USB stick are all potential scenarios. Your device in the wrong hands could mean big trouble. Cyber insurance can help cover the costs associated with a data breach resulting from a lost, stolen or hacked device.