Since we live in the Information Age, the most valuable asset for most businesses is information. Nowadays, most businesses keep all of their information on clouds or servers that are more often than not connected to the internet. That being said, everything that’s on the internet is liable to hacking or maliciousness, and each and every business is responsible for safeguarding all of the data they hold. This has become especially important in the past several years, because there are now many different laws and regulations in place that hold businesses accountable for every breach they experience and every piece of sensitive data that gets stolen.

While this may discourage some people from going online, it really shouldn’t. There are ways to cope with costs associated with data breaches, such as purchasing Cyber Insurance. You can implement a cyber insurance policy as part of your overall risk management strategy. With that said, every business, regardless of its size, can take advantage of the benefits that come with cyber insurance.

Closing the Gap Between Current Needs and Traditional Coverage

Traditional insurance oftentimes only covers liabilities that come out of tangible property. For instance, if data from a particular server is breached, the insurance will cover the server, but not the data. Moreover, traditional insurance coverage doesn’t cover first-party breach costs, meaning that there’s a considerable gap in coverage of a business’ digital assets, which ultimately exposes them to the full costs in case of data loss. Simply put, cyber insurance is specifically designed to cover this gap.

Ensures Business Contingency

This type of insurance ensures that your business can continue to operate even though it has suffered loss of income. The insurer can cover your loss during the time of interruption, and increased business costs from the aftermath can also be covered.

Privacy Breach Costs

Policies can either have one clause or two separate ones: privacy liability and breach costs. A privacy liability clause covers the legal costs associated with privacy infringement claims. Breach costs, on the other hand, cover costs that arise from dealing with the security breach, like notifying your clients, for example. Both of these are crucial for organisations that deal with personal client information.

Cyber Extortion Protection

Your policy can be tailored so that it covers you in case your business is infected by malicious software, like ransomware, through which hackers attempt to extort you for the access of your information. Just last year the frequency of such cases was at an all time high, and with most businesses already having transitioned online, it’s something that’s definitely going to keep happening in the foreseeable future.

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