Data breaches and ransomware attacks are becoming more frequent and more costly, especially as more businesses are making the shift to remote digital platforms. From small & medium-sized businesses to multinational conglomerates, all it takes is a single vulnerability to lose critical customer and business data.
In fact, IBM reports that the average cost for a data breach has risen to $4.24 million. This makes cyber liability insurance an important investment because it’s more than just the chance to improve your business’ cyber defense from your end, it’s about protecting your team and your customers.
Here is all you need to know about the importance of having cyber liability insurance & an effective security strategy.
The Basics of Cyber Liability Insurance
As financial advisers often say, if it matters to you, then you should insure it. The same with real estate or even health, cyber liability insurance protects your company in the event of a cyber incident or unexpected disaster. This helps you mitigate cyber risks and the costs associated with data breaches events and business interruptions.
Generally, cyber liability insurance plans will cover a business’ financial losses stemming from viruses infecting their systems, data breaches, hacking and other forms of illegal access to your data, such as Distributed Denial of Service (DDoS) attacks. From the costs associated with investigation, fines and penalties, and even legal fees from ensuing lawsuits–you can spare your business the financial nightmare with an insurance plan in place. In exchange, the business only pays an agreed-upon premium, whether annually or quarterly.
A Harrowing Question
Consider this scenario: you’re a business who has just fallen victim to a data breach. This could unfortunately be the result of a disgruntled employee or someone accidentally clicking a bad link in an email.
Who do you call?
You should call your cyber insurance provider, as the breach came from within your business. Alongside them, you should also call your Managed IT Services provider (MSP), as they will play a huge role in recovering your data.
It’s important that your business doesn’t just have a strong IT infrastructure, but a thorough cyber insurance policy, as well.
Why Should I Apply?
Contrary to misconceptions, cyber liability insurance is not reserved for companies dealing with tech or communications. As the world adapts to the new normal after the pandemic, more businesses are making the shift to remote work. Regardless of the industry, if you’re using the cloud and the internet to conduct your business, check out these reasons for having a cyber liability insurance plan in place.
Build your Defenses
Before applying for an insurance plan, an organizational assessment is often conducted. This is when you should contact a knowledgeable MSP; they will review your business processes and the security measures put in place, identifying vulnerabilities in the entire system and helps you correct them to reduce your risks of being attacked.
For example, Slack has become one of the most popular business communications available. While it has its own industry-grade security in place, you can boost your defenses and ensure your company’s compliance with leading industry standards through the use of Data Loss Prevention (DLP) solutions. DLP for Slack adds smarter and faster measures that help prevent accidental data leakages or flag suspicious files from even entering your communication space.
Depending on the provider of your policy, it can even cover the assessment process. Furthermore, a number of cyber liability insurance providers cover the expenses for hiring cybersecurity experts that help you cut your costs and allow you to proactively improve your company’s security. With this advantage in terms of expenses, your organization can now adopt more forward-thinking policies regarding data management and security.
Strengthen Your Vulnerabilities by Working with an MSP
Whether it’s for your company’s internal platform or through SaaS solutions, operating in more than one place means different conditions and different standards. Unfortunately, this also means more opportunities for vulnerabilities to exist. Aside from your organizational security measures, remember that your employees working elsewhere are also exposed to cybersecurity risks of their own. Some of them can even pose risks for your company, from phishing schemes to unencrypted file sharing.
By applying for cyber liability insurance, you can ensure that your company can still expect some form of protection and support from cybersecurity problems stemming from other locations. This is especially important for companies that are hiring remote globally.
You can have your headquarters updated with the latest security measures but your operations and employees from other locations are not as safe, and they might be the access point for attackers and malicious programs to enter your own information highway.
You can learn more about partnering with a certified MSP and a trusted cyber insurance provider by watching our latest webinar!
Ensure Your Company’s Survival
In the rapidly-evolving entrepreneurial landscape, innovation is crucial for a business’s survival. Now that most businesses utilize online tools one way or another, the importance of protecting their assets in cyberspace with the right MSP/MSSP is more important than ever. It is important to remember that not all companies can survive a cybersecurity issue. A data breach is often followed by regulatory punishments for the business, especially when negligence from their end has been identified.
Business owners also have to brace themselves for lawsuits, which usually come from the owners of the compromised data, whether it’s your employees or your customers. Lastly, being exposed as a vulnerable company erodes the public’s trust in your organization, which affects its ability to turn a profit and could even threaten the very survival of the business.
This is also the main selling point of cyber liability insurance plans and IT for accounting and financial firms, especially since not all companies have the material and skills resources required to bounce back from a data breach or loss incident. In exchange for a regular premium, you can rest assured that you can immediately respond and recover should an unfortunate event occur in your company.
It’s Time for Peace of Mind
A cyber insurance policy protects you, your employees, and your customers from liability as well as the increasingly common threat of cyber attacks. From incidents caused by systems themselves to data breaches initiated by unlawful elements, you want to mitigate the potential for financial losses. By putting a plan in place, you can rest assured that you have the resources to ensure your survival and recovery in the event these cyber incidents happen to your company. Furthermore, it gives your company an opportunity to prepare and upgrade its capabilities in preventing and handling these kinds of situations.
If you’re a business owner looking to gain peace of mind, Contact Us today for a Free IT Evaluation. We can give you reliable advice on cyber insurance and build your business up to its maximum potential!