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  • Amanda Bird

How Important is Cyber Insurance for Businesses?

As businesses of all sizes continue to adopt digital technology, they face the challenge of protecting their operations while remaining connected to the digital world.


To protect against cyber threats, business owners can use cyber insurance, as well as other tools and techniques such as encryption, anti-spam filters, anti-virus software, and intrusion detection systems.


Here are seven reasons why your business needs cyber insurance.


What is Cyber Insurance?


Since cyber attacks can happen to anyone, cyber insurance can protect any type of organisation. Cyber insurance covers the cost of a business's cyber security breaches, cyber liability, and the cost of cyber extortion, among other things. It can be tailored to the business's needs and is relatively inexpensive.


Here are just a few of the things cyber insurance can cover:


Compromised Customer Data

Breach of Confidential Information

Loss of Sensitive Data

Loss of Employee Productivity

Third-Party Liability

Negative Publicity

Reputational Damage

Breach of Privacy

Cyber Extortion

Cyber Attack Recovery


Why is Cyber Insurance Necessary for Businesses?


The consumers who shop at your business could have their sensitive financial or personal information compromised in a cyber attack. Your cyber insurance can help the business compensate these consumers and rehabilitate the business' image and reputation.


Cyber insurance can also help protect against liability in the event of a cyber attack. If a consumer is targeted by a malicious attacker, your business could be held responsible for the damage.


With the pace of the digital revolution accelerating each day, it's important to know that you're covered if an attack does happen.


How Can Cyber Insurance Protect Your Business?


Cyber insurance is akin to general liability insurance, but specifically covers cybersecurity breaches. If you're a small business owner and you've never thought about what happens if you're hit by a cyber attack, now's the time. Cyber security attacks have been on the rise in recent years. They can cause a lot of damage to a business and its customers. That's why you need to know how to protect yourself from cyber attacks. Fortunately, cyber insurance is a good investment when it comes to protecting your business from cyber attacks. Here's how:


1. Cyber Liability Insurance


Cyber Liability Insurance can help you cover the cost of the legal and financial responsibilities when an attack does occur. You can also use cyber liability insurance to help protect you from litigation after a breach of personal information does occur.


2. Insurance for Damages


Cyber policies offer reimbursement for the costs of IT systems upgrades, repair, and replacement. They can help your business get back to business quickly.


3. Data Breach Coverage


A data breach can occur in a number of ways, and business owners should be protected. Cyber insurance can help protect against the costs associated with stolen or leaked data.


4. Cyber Extortion


Most cyber insurance policies will cover costs related to cyber extortion. Recovering from cyber extortion can include restoring data, paying ransom to free data from an attacker, and repairing or monitoring your systems after the attack.


5. Third-Party Coverage


If you share the information of your customers or employees with a third party, your cyber insurance policy can help cover the costs of a breach.


Conclusion


As more and more businesses embrace the digital revolution, the risks of cybercrime also increase. Business owners need to protect their operations and data against cyber attacks. This is where Cyber insurance can be of great help. It's one of the best ways to protect your business and its assets against cyber threats.


New Wave Insurance works with several insurance providers to bring you the best possible solutions. As Gold Coast’s premier insurance brokers, we can help you find cyber protection insurance that's right for your business. Contact us today to book a free 15-minute consultation with us.

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