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  • Amanda Bird

5 Reasons Companies Should Have Cyber Liability Insurance

Cyber Liability insurance has been offered since 2000, and many small firms benefit from its safeguards. Unfortunately, many small firms do not get Cyber Liability insurance because they believe they do not require it.


In reality, almost every firm will face some kind of cyber security issue. Assume that businesses do not form risk management plans or get adequate insurance coverage. In that situation, the attacks might be financially harmful, disabling, or even lead to the liquidation of a corporation.


Let’s take a look at the reasons any company should consider cyber liability insurance:


1. Small Businesses Usually Rely on the Internet


With technology advancing over the past 20 years and with technology advancing, most small businesses depend very heavily on the Internet. This means that contracts and other vital business documents are stored in the cloud and not in the business' local servers.


It is an excellent way for small businesses to сut costs, but it comes at a price. The business' data is not secure, and every trade has a cloud storage media. If the data stored in the cloud is compromised, the industry — and its clients — will suffer.


2. It's Cheaper Than Doing Nothing


Cyber liability insurance is relatively cheap. The policy usually costs a few thousand dollars a year. That pales in comparison to the cost of actually losing data or clients. For example, companies that have been victims of a cyber attack have had to pay a $30,000 ransom to get data back. The ransom could rise as the company's data grows. It may be not enough, but it can help put a massive corporation in the business.


Although іf a small business has the right policies in place and works with trusted partners, it should be able to avoid paying any ransom.


3. It Can Prevent a Major Crisis


Companies usually don't realise they've been hacked until a major crisis occurs. Suppose a ransomware attack locks the company out of its data and threatens to release it to the public. In that case, the company either has to pay a ransom or lose confidential data to these malicious individuals. To avoid a crisis, a company should have a cyber liability insurance policy to cover the cost of retrieving the data.


4. It Can Help with Lawsuits


Even if the company doesn't have to pay a ransom, some crisis will arise. And the company is going to suffer some sort of financial loss. The reason why is because сompanies can sue cybercriminals for damages.

As a small business owner, try to сreate a risk management culture. Talk to your employees about how they handle their passwords, how they use their company's computers, and how long they keep their data. Talk to your family and your friends. Talk to anyone. If your business is ever hacked, you can protect the data, and it should be easier to recover from any crisis.


5. You Need the Protection


Cyber liability insurance can protect various things that a cyber attack can damage. For example, a cyber liability insurance policy can save a company's reputation. If your competitors have access to your client list – or to the emails of your workers – they can use that knowledge to steal your clients. When that happens, уour business's reputation is going to be damaged.


Try to рrovide as many protections for your company as possible. If hackers attack, having the right insurance can protect your business from losses. Even if your business never gets hacked, it's still essential. It's a sign of respect for your employees and your clients.


Conclusion


Because of the rapid development of technology, our demand for cyber liability insurance is more significant than ever. A cyber liability policy should be in place for every organisation, regardless of the size of the business.


Keep in mind that a cyberattack might destroy your company. Ensure you are aware of the risks and ensure your company is safeguarded.


Contact our team now to take your company to the next level. Allow us to assist you if you need support or direction. New Wave Insurance provides dependable cyber protection insurance in the Gold Coast. Contact us now to find out how we can assist you!


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