Data breaches can cost a small business anywhere from $120,000 to $1.24 million. You should consider getting cyber liability insurance to protect your business from these costs.

Although it’s challenging to think about, any business can potentially suffer from a data breach, ransomware, or another type of cyberattack. While your company should improve its security as much as possible, cyber liability insurance can also be helpful.

This business guide will explain why cyber liability insurance is essential in the digital age.

What Is Cyber Liability Insurance?

Cyber liability insurance is a type of insurance that protects your business and provides coverage for financial losses from cyberattacks. It can help provide coverage in cyberattacks, data breaches, hacking, and ransomware cases.

There are many costs associated with these issues. This includes ransomware extortion payments, investigation costs, compliance fines, lawsuits, and more. 

Cyberattacks can affect businesses of any size and can cause significant setbacks when they occur. They can also affect your reputation and your relationship with customers as well.

Types of Cyber Insurance

There are two main types of cyber insurance. 

First-party insurance covers business costs such as ransomware extortion payments, lost revenue, and accident investigation costs. Third-party insurance can help cover the costs associated with lawsuits due to cybersecurity incidents.

Why You Need Cybersecurity Insurance

There are several reasons why cybersecurity business insurance is essential in the digital age. Here’s what you should consider.

Your Business Is at Risk

Businesses of all types and sizes could be targeted for cyberattacks or ransomware, so you must be prepared.

With a business network and a connection to the internet, your business could be at risk. While the internet is a helpful tool connecting your business to the outside world, it can open you to attacks.

Cybersecurity insurance can help give you peace of mind. It will offer coverage in case your business experiences problems.

Costs Can Be High

The costs associated with cybersecurity attacks are significant and can be challenging. In many cases, they’ll force a business to close its doors.

Because a cyberattack can cost a business as much as $1.24 million, it’s essential to be prepared. Rather than dealing with these high costs, you should aim to get cyber liability coverage.

Your Business Will Experience Downtime

Not only will a cyber breach or attack cost your business, but it will also slow down operations. Days or weeks of downtime will be necessary after a cyberattack to investigate the attack and recover from the losses that occurred.

This means that there will be a lot of lost revenue during this time. Insurance can help to cover these setbacks and help your business stay on track.

Your Reputation Will Suffer

Customers won’t be happy to learn that there was a data loss and that their personal information was compromised.

A cyber insurance policy can help you manage your customer relationship when responding to a data breach or cyberattack. It can help your business handle the costs of repairing the damage and rebuilding your relationship with them.

Ready to Get a Cyber Liability Insurance Policy?

You should consider getting a cyber liability insurance policy to protect your business from setbacks. A cyber insurance policy can help your business cover costs related to a cyberattack and any lawsuits that come up as a result.

Ready to get a cyber insurance policy? Learn more about how we can help you get the right business insurance plans now.