Is Cyber Liability Insurance Right For Your Company?

Does the thought of the financial ruin of hackers exposing your data keep you up at night? Find out if cyber liability insurance is a good option for your business?

How safe is your company’s data? The truth is it’s probably not as secure as you think. Social engineering-based data breaches and ransomware attacks are on the rise.

Don’t fall into the same trap as the majority of independent business owners who believe that their companies are just too tiny to interest hackers. Hackers love small businesses to think that way. It makes their job a lot easy.

In reality, 90 percent of data breaches affect smaller businesses and can cost an average of just under $47,000 to remedy. That is more money than many small businesses can’t afford to pay out-of-pocket. Even if you have a general business liability insurance policy, don’t expect to get reimbursed by your insurance company for a data breach. These policies don’t usually cover cyber crimes.

Therefore, a growing number of business owners are opting for separate cyber liability insurance. Is this type of insurance something you should think about getting for your company?

How Do I Know If My Company Should Carry Cyber Liability Insurance?

The decision to purchase cyber liability insurance will greatly depend on what kind of company you run and how much sensitive information you store online. By answering the following three questions, you can gain a clearer perspective if cyber liability insurance is right for you.

What’s your industry? When it comes to hacking, cybercriminals have well-defined preferences when it comes to which kinds of businesses are the most profitable to hack. Online retailers, hospitality, healthcare, and financial sectors are popular choices. While cybercrime is more common in some industries than others, it doesn’t mean that id your business is in another area that there are no risks.

What customer data do your servers store? Some information is worth a lot of money, and therefore much more attractive to hackers. If you maintain customers’ personal information such as credit cards, bank transfers data, or health records in your computer system, then you will want to be extra cautious. The same goes for companies that keep private employees or company information online.

How is your current cybersecurity? Twenty-nine percent of small businesses spend less than $1400 on their IT security per year. That is never going to be nearly enough to safeguard companies against a determined cybercriminal. While comprehensive cyber liability insurance can help to mitigate the costs of a data breach, it will never be able to help you regain the trust of your customers who had their private records exposed.

Whether you decide that cyber liability insurance is the right choice for your business or not, even the best insurance policy will never replace the need for high-quality cybersecurity protection. Business owners in the Ottawa area should contact the top-rated IT experts at Fuelled Networks. Whether you need cybersecurity, data recovery, or other managed IT services, Fuelled Networks is the third-party IT solution you need!