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Top Reasons You Need Cyber Insurance

Business InsuranceBusiness Cyber Insurance

Insurance is constantly evolving, and one coverage that has been rapidly changing and becoming extremely important is Cyber Insurance. No matter what type of business you run, where you’re located, or how much time you spend online, your small business needs cyber insurance. Below are the top 10 reasons you need cyber insurance.

• A Cyberattack happens every 20 seconds. The odds of becoming a cybercrime victim are greater than experiencing a loss due to flood or fire.

• You don’t have to be a big business. Nearly half of all data breaches target small businesses. Cybercriminals are looking for vulnerabilities, and small businesses with outsourced or underfunded IT departments often have them.

• A data breach can be devasting. Nearly 40% of cybercrime victims spent $50,000 or more responding to the attack. That kind of money could damage or cripple a small business.

• Cyber Insurance covers a broad range of costs. Our cyber insurance covers computer attacks, data breaches, cyber extortion, liability, misdirected payment, telecommunications fraud, and identity theft.

• Nearly all businesses are at risk. You’re exposed to cyber risks if you depend on a computer, tablet, smartphone or the internet to conduct business. Any digital device can be an entry point for cybercriminals.

• Cyber risks are constantly changing. As technology evolves, so do the risks that threaten your business and the data you use daily. Having insurance to protect against new and changing risks is critical.

• You don’t have to be targeted by a criminal. Cyber insurance helps to respond to an unintentional leak of personal data or records. According to one source, 9.7 billion data records have leaked since the start of 2019.

• Businesses need to budget for the risk. If you don’t have insurance to cover a risk, this expense could put a small business out of business.

• Hackers are highly organized. Cybercrime is a big business perpetrated by individuals and often by highly organized criminal teams from countries like China, Russia and North Korea.

• Coverage costs less than other types of insurance. Cyber coverage costs less for the level of protection it provides compared to other types of business insurance.