The first slip-up small business owners make is thinking that their business is not on a cybercriminal's radar. Why would a hacker be interested in a business not yet completely off the ground? Isn't there more to be gained from targeting a large company? It's thinking like this that lays the trap for the business owner and makes their vital (and confidential) business information ripe for the picking.
When you think you're safe, you don't take precautions. If you really sit and think about it, this tempting fate. To protect you, your staff's and your clients' personal information you need to invest in a cyber liability insurance policy. What is cyber liability insurance you ask? Don't worry, you've come to the right place for the answer.
If you were told today that your network had been hit with a ransomware attack, what would your first course of action be to take? Would you try to shut down the network? That won't do anything; the hacker has already done that. Would you try changing all of your access codes? It wouldn't matter, the hacker is already in the system and has total control. The hacker has been able to "appropriate" business and customer financial accounts. They have sworn that if you do not pay a ransom, they will either sell, release or destroy of ounce of information they stole. Do you pay the ransom, or do you risk losing the data forever?
Cyber Liability Insurance: What is it?
This is where the answer to your 'what is cyber liability insurance?' comes into play: you do not pay the ransom. You contact your cyber insurance agent immediately and brief them on the situation. It is from there that your insurance company will dispatch an insurance adjustor to look into the full extent of the financial damages and award you your claim.
Cyber liability insurance is an insurance policy designed to protect policy holders if a cybercriminal should compromise the integrity of their technological products or electronic services. More specifically, cyber liability insurance covers your business' financial needs when it suffers an interruption that puts said business out of commission, until you are able to again open your doors.
Cyber liability insurance covers:
Data Breach Loss: Assists in the cost of the network investigation (to understand where and how the cybercriminal was able to gain access) regulatory fines and legal costs.
Ransomware Infection Loss: Assists in the cost of paying the ransom for the data or to help pay for the restitution clients will seek once the cost of the damages are shared with the public. Clients/customers will likely sue if their personal information has been compromised. Cyber liability insurance will cover the incurring fees.
Business Interruption: Assists in the cost of loss of business. If the business must be closed until the network is patched up or the data recovered you will still need to pay your employees for loss of income, cyber liability insurance will cover this.
Cyber liability insurance protects your business when all other systems have failed. Learn more when you get your free quote with CyberPolicy.