Businesses face countless threats every day, and with our dependence on the internet, cyber threats are a constant. That is why cyber liability insurance is vital for nearly every business. However, as a relativity new concept, many people do not understand why they need cyber security insurance or even what it is. Therefore, to understand why cyber liability insurance is essential, business owners first need to understand cyber liability.
What is Cyber Liability?
In this context, a liability is anything that’s presence or function puts a business or its customers at risk. Due to our increased reliance on computers and the internet, technology has become a liability for many companies. Any business that relies on the internet to connect with customers, store data, or perform other business functions runs the risk of being victimized by cybercrime or accident.
A data breach or similar cybercrimes could lead a business to ruin. Companies can lose the trust of their customers and face legal actions for their irresponsibility, all because they failed to protect customer data. In America, 55% of small businesses have experienced a data breach. Unfortunately, cyber-criminals smell blood in the water and have set their sights on small businesses. So, how can small companies protect themselves? In addition to following internet and data safety protocols, insurance is the way to go.
What is Cyber Liability Insurance?
Cyber liability insurance covers your business’ liability for cybercrimes such as data breaches. As we said above, if your business is the victim of a data breach, losing the trust of your customers is the least of your worries. If an affected customer takes you to court, the legal fees could bankrupt your business. 60% of cyber attack victims are out of business within six months. In addition to legal fees and other expenses resulting from a breach, cyber liability insurance helps protect businesses from things such things as:
- Copyright & trademark infringement
- Unauthorized access
- Introduction of viruses
- Any activities involving business use of the internet
Does My Business Need Cyber Liability Insurance?
We can definitively say that any business that uses the internet to conduct business needs this form of insurance. We genuinely are not exaggerating when we say cybercrimes could ruin your business and reputation. Determining the amount of cyber security coverage a business needs is the next big challenge. Fortunately, the experts at Arthur Blake Insurance are here to help.
Contact Arthur Blake Insurance Today
One of our experienced insurance agents will consider the scope of your internet activities and the range of risks that require coverage to help them determine how much coverage you need. Contact Arthur Blake Insurance in Plano, Texas, today for more information and a free cyber liability insurance quote!