As technology continues to advance, the organization’s data continues to become vulnerable. The latest technology, the new risks accompany it. Almost all organizations today are using computers and the internet which is why they are in danger of a data breach. Cyber security has been a concern for many businesses, but amazingly, only a few of the businesses have put measures to curb this menace.
Today, it is hard to spend the whole day without hearing of an organization that has fallen victim to a cyber-attack. These attacks affect both small and large businesses. It could be a data breach that has exposed sensitive and private information to the company’s clients or an annoying post on the organization’s social media account.
A cyber-attack can cost businesses a lot of money before it gets back to normal and worse enough to get them out of business. Although it may look expensive to invest in Cyber Liability Insurance cover, a business will incur the true cost when an attack occurs and you are not insured.
Data privacy and cyber liability are very helpful especially when it comes to dealing with data breaches, so, we’ve shared some reasons why you think about investing in this important cover.
1. Cybercrime is growing tremendously.
There is no day that will pass without hearing news about a particular organization or a company that has experienced it. In fact, as technology continues to advance, cybercrime continues to grow and at a fast speed. Businesses are connected with the internet, people and society too are connected by the internet and this makes cybercrime to be a real threat.
A cyber-attack can happen that like a terror attack, meaning you will not be aware until it happens unless you’ve put measures in place to tell whether an organization is vulnerable to such a threat. This is why businesses, companies, and organizations need to ensure they are insured in case the worst happens, this way a business can still pick itself up and continue to operate.
2. Data is one of the vital assets in an organization or a company
When it comes to the continuity of an organization, data is everything; however, shockingly it is not covered by GCL insurance policies. Organizations store large quantities of data and information on computer servers and databases and the data accumulates every day.
Note that the reason why hackers and cybercriminals want to steal your organization's data is that they know it is one of the most important assets you have. You must understand that data is more valuable than the equipment that stores it. But when data is lost or when it is destroyed, the General Commercial Liability policy will not cover it. Cyber liability will ensure any data that is lost or destroyed or lost.
3. There has been an increase in claims which arise from social media
Social media is growing rapidly as an entertainment platform. Information is spread faster than ever before. However, there is little restriction concerning what people are doing on social media.
For instance, company employees could share confidential information on a platform like Facebook and the organization would be accountable for the exposed information. Cyber liability can aid to cover for such claims.
4. Your reputation needs to be maintained
The reputation of any organization or business is paramount. While there are other risks that cannot be covered when it comes to reputation, it is important to obtain insurance coverage in case you are faced with a security breach. Note that to rebuild your reputation from an attack it will cost you a lot.
When hackers compromise your system, your client’s data is at risk and this can make customers lose trust in you, which could adversely affect your business. For instance, if you decide to work with an expert to restore your reputation, a cyber-liability cover can cater to the cost.
5. Your client’s data is valuable and you are answerable in case it is lost or destroyed.
Today, businesses are storing more data, most of which belong to clients and sellers. You could expose your customer’s data or you could send an email to a customer that contains a virus and this can cause a crash in your customer’s system. In the case of such a situation, you could be held liable for all the damages caused.
6. Cyber-criminals are targeting both small businesses and large organizations
If you think your business is too small to be targeted by cybercriminals then think again. Currently, hackers are targeting small and big corporations. There has been an increase in cyber-attacks to big corporations which have made these companies to find ways of curbing this menace and this has made attackers to target small companies. This could cause a serious problem for small companies that are still struggling in their startup phase.
Most of the small companies that have fallen victims of cyber-attacks have gone out of business within a few months. A cyber liability cover would aid to keep organizations prepared for a cyber-attack and would cater to the cost incurred in case it happened.
7. Systems are fundamental when it comes to your everyday business operations
Every business, organization or companies relies on systems to carry out their day to day operations, yet when there is a downtime, Business Interruption insurance does not cover it.
For instance, if your business relies on computer systems to transmit data when a disaster happens and causes a hitch in the transmission of data, clients who depend on your services may lose possible income. A disaster can cause failure to your servers or breach your data and this could adversely affect your business operations.
A cyber liability insurance policy will cover any expenses that are incurred as a result of the interruption, which covers lost revenue that could have been gained in case the disaster hadn’t happened. The Business Interruption insurance wouldn’t cover such a claim.
Although there has been a rise in cyber-attacks ranging from data breaches, malware to viruses, small business owners think their businesses are safe from such attacks.
You need to understand that cyber-attacks can hit your business whether small or big, so to ensure you are covered think about investing in data privacy and cyber liability.
Kate is a passionate writer who likes sharing her experiences and thoughts with the readers. Now she is working as a marketing specialist at https://axonim.com. She likes traveling and everything related to new impressions.