In today’s digital age, businesses face an ever-increasing threat from cyberattacks. These attacks not only jeopardize your operations, revenue, and reputation but also put your clients’ data and intellectual property at risk. Let’s explore why cyber liability insurance is a vital safeguard for your business.
Why Cyber Liability Insurance is Vital
Cybersecurity is not merely a buzzword; it’s a top concern for executives. Forbes reported that cybersecurity took center stage, with leaders recognizing the critical importance of protecting their digital assets. Grant Thornton’s International Business Report found that 47% of mid-market leaders surveyed said cyberattacks are an ongoing threat to their business.
According to IBM’s 2022 Cost of a Data Breach Report, companies that have experienced a data breach once are likely to become victims again. An alarming 83% of companies that fell victim to data breaches had to endure multiple attacks.
Consider the unfortunate fate of a 157-year-old college in rural Illinois. A crippling ransomware attack locked them out of their data, leading to severe consequences. The college never fully recovered from the lost enrollments and network damage, highlighting the dire implications of a cyber incident.
How Cyber Insurance Can Protect Your Business
A well-structured cyber insurance policy can act as a shield, offering coverage for:
- Lost income
- Customer data breach notifications (mandatory in most states)
- Free credit monitoring for affected customers (also mandatory in most states)
- Legal defense, state fines, damages, and settlement awards
- Reputational damage and public relations support
- Restoration of computers and networks
- Implementation of technology improvements to prevent future hacks
We Decode Cyber Jargon for You
At Hotaling Insurance Services, we understand that the world of cyber insurance can be complex. Let us simplify the process and help you understand terms like “ransomware,” “phishing,” and “zero-day vulnerabilities.” We ensure that you’re equipped to make informed decisions about your insurance needs.
Your Cyber Hygiene Matters
Before applying for cyber insurance, you should evaluate your cyber hygiene. Insurance companies will scrutinize your cybersecurity practices. Key considerations include:
- How much personal data do you collect and store, including paper files?
- Do you use antivirus software, strong passwords, and multifactor authentication?
- Do you have a written cyber incident response plan?
We’re here to guide you through these important preparations and help you put your best foot forward when applying for coverage.
Contact Us for a Comprehensive Cyber Coverage Review
Don’t leave your business vulnerable to cyber threats. Reach out to Hotaling Insurance Services for a no-obligation coverage review. We’ll work with you to create a policy that aligns with your unique risks and budget, ensuring you have the protection your business needs.