The occurrence of cybercrimes such as data breaches is increasing at an alarming rate. Cybercriminals don’t just target big companies but also small and medium-sized businesses since they often lack the security infrastructure of larger organizations. In fact, an SBA survey found that 88% of small business owners feel vulnerable to cyberattacks.
The costs of recovering from a cybercrime can be high and may include legal fees and specialized repairs, which could negatively impact your brand’s reputation. As such, it’s wise for businesses of all sizes to consider purchasing cyber liability insurance as a precautionary measure.
What is Cyber Liability Insurance?
Cyber liability insurance is a policy that provides organizations with several coverage options to help protect them from data breaches and other cybersecurity issues.
What is Included in Cyber Liability Insurance Coverage?
While specific provisions of cyber liability insurance may vary between insurance providers, standard policies typically include expenses related to cyberattacks and data breaches that impact your business. Additional coverage may be offered by insurance companies to cover:
- Fines from regulatory agencies
- Investigative services
- Identity and data recovery
- Business income loss from cybersecurity incidents
- Public relations costs for restoring brand reputation
- Expenses for repairing damaged computer systems and additional hardware
- Costs associated with damage affecting your customers or business partners, including legal fees, settlement costs, and customer notification.
Reducing the Cost of Cyber Liability Insurance and Ransomware Risk
While the total price of coverage will vary depending on multiple factors, organizations can minimize the cost of cyber liability insurance and lower their risk of ransomware attacks through several simple steps, such as:
Providing end-user security training:
Cybersecurity awareness and training programs like NINJIO can help employees learn about phishing and ransomware, so they can be better prepared to recognize security threats and prevent potential breaches or attacks.
Enabling multi-factor authentication:
Using multi-factor authentication on all accounts and ensuring that antivirus and malware software is updated on all devices can help resolve known vulnerabilities.
Reviewing backup and recovery plans:
In addition to backing up data, businesses should also consider backing up critical applications, network resources, and software. Backups should be securely stored to prevent ransomware attackers from encrypting or deleting them..
How Much Cyber Liability Insurance Do I Need?
Determining the appropriate amount of cyber liability insurance for an organization depends on factors such as company size, specific risk factors based on vertical market segment, and the collection, storage, and transmission of personal data. Organizations in highly regulated industries should consider obtaining cyber liability insurance. Insurance companies may require more compliance for businesses to qualify for an insurance policy, and it is important for business owners to ensure that their IT infrastructure meets cybersecurity standards. Local office technology representatives can help ensure compliance and cost-effective cyber liability insurance policies.
At Premium Digital Office Solutions, our goal is to help you find the best strategies in your own workplace, in person or remote. Contact one of our representatives today, and find out how to get the most out of your office today.